The Degree of International Capital Mobility: The Cases of Taiwan and Japan

• Main Authors: Hung-jen Kuo, 郭宏任
• Other Authors: Wen-jen Hsieh
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/19069109058914494630

碩士 === 國立成功大學 === 政治經濟學研究所 === 92 === 　　Since the 1980s, the liberalization and internationalization of the financial sectors has become a main stream in many countries. Owing to the 1997-8 Asian financial crisis, the researchers have resumed interest in the openness of financial sector. This thesis utilizes Feldstein and Horioka (F-H) condition, as well as applies the concept of the uncovered interest rate parity to Montiel's model (1990) to establish empirical models. Time series data of the first quarter of 1981 to the fourth quarter of 2003 are employed to examine the degree of international capital mobility or the openness of financial system in Taiwan and Japan, respectively. During the period under the study, possible structural changes in financial sector are also considered. 　　In Montiel's model, we have found that whether or not the structural changes are incorporated, the degree of international capital mobility in Taiwan’s financial sector is lower than that of Japan. The estimated results seem to concur with previous researches and current situations. According to the result of Montiel's model and the empirical evidence, Taiwan fell short of the financial deregulation which had been achieved by Japan, and, therefore, fared better during the Asia Crisis due to the lesser openness of financial system. However, the estimation with the F-H condition model cannot be established, due the existence of unit roots and unavailability of long-term co-integration. The results suggest that the Montiel’s model is more suitable for comparative researches between Taiwan and Japan’s international capital mobility.