Reproduced from the Quarterly Journal of International Politics, with kind permission of the authors and the Institute of International Studies, Tsinghua University.
Financial Opening and Financial Security
*Corresponding author. Email: yefujing@yahoo.com.cn
| The first 150 words of the full text of this article appear below. |
Since the onset of globalization in the 1980s, ever-greater numbers of countries have joined in the tidal wave of financial opening. But the costs and benefits of taking this step vary enormously. Certain countries greatly enhance their financial strength by attracting international capital of a magnitude sufficient to remedy financial deficits and redress unfavourable trade balances. Others experience serious crises, their economic security beholden to the constant challenge of international capital flow. Why should experiences of financial opening vary to such a great extent? And why do foreign-invested financial institutions (hereafter: foreign financial institutions) have such a low market share and so little influence within the vast majority of developed financial markets?
Financial opening is definable on many different levels. This article's defining criterion is that of whether direct administrative limitations are placed on international capital and foreign financial institutions. There are two main aspects of financial openness. The first
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Contemporary Theoretical Analysis and Its Shortcomings |
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National Differences
Inappropriate Open Strategy
Insufficient Regulation
Unsound Economic Fundamentals
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Financial Opening, Effective Protection Mechanisms and Financial Security |
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US Financial Security Protection |
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Implementation of Focused Surveillance of Capital Flow
Required Local Citizen Involvement in the Decision-Making Procedures of Foreign Financial Institutions
Limitations on National Treatment
Encouraging Formation of Oligopolist Financial Groups and Permitting Domestic Market Dominance by Large Domestic Financial Institutions
The Core of the American Model
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European and Japanese Financial Security Protection Mechanisms |
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Maintenance of an Immense Public Law Financial System
Cultivating a Financial Oligopoly
Universal Bank Control of the Securities and Insurance Industry
Practice of the Main Bank System and Promotion of Unified Domestic Banks and Industrial and Commercial Enterprises
Limits on Predatory Foreign Mergers and Insistence upon a Principle of ‘Reciprocal Requirements’ for Financial Openness
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Analysis of Financial Opening in Developing Countries |
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The Financial Crisis in Argentina
Singapore's Success
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Conclusion |
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