Short-term Foreign Funds, a Comparative Study between China and Victim Countries of the 1997 Asian Financial Crisis

摘要

The 1997 Asian financial crisis inflicted serious economic damage to many Asian countries. However, China conspicuously avoided being severely attacked by this crisis. This study compares the growth patterns of foreign short-term debt, foreign debt structure and short-term foreign capital between China and victim countries both before and after the crisis. Evidence shows that China has been aggressively using short-term foreign debt and short-term foreign capital in the last several years. This indicates that China is exposing itself to great financial risks.