This paper presents a two-country two-commodity dynamic model with free international asset trade in which one country … stagnant country's current account depreciate the home currency, expand home employment and improve the foreign terms of trade …

This paper presents a two-country two-commodity dynamic model with free international asset trade in which one country … stagnant country’s current account depreciate the home currency, expand home employment and improve the foreign terms of trade …

trade frictions. Our study confirms that China's capital flight pattern and its determinants are affected by the crisis …We study China's illicit capital flow and document a change in its pattern. Specifically, we observe that China …'s capital flight, especially the one measured by trade misinvoicing, exhibits a weakened response in the post-2007 period to the …

than before. That is, capital controls in China are still substantial and effective. In addition to exchange rate changes … variables that capture changes in China's policy …

We study the empirical determinants of China's capital flight. In addition to the covered interest differential, our … regression exercise shows that China's capital flight is quite well explained by its own history and covered interest … differentials. The other possible determinants offer relatively small additional explanatory power. It is also found that China …

We analyze the transmission of global financial crisis to business cycles in China and India. The pattern of business … negative, but they are also influenced most by the global financial crisis. Finally, we find a significant link between trade …