Evidence from the driving forces of cross-border capital flow of RMB:Based on the classification into substantial transactions flows and financial transactions flows
The RMB capital cross-border flow partly increases rapidly and takes the place of the flow in foreign currency which implies the policy aim and economic conditions. Thus this paper classifies the flow into substantial transactions flows and financial transactions flows in terms of their relationships with the real economy and applies the econometric methods to show the evidences of the driving forces. The results show that the policy factor plays a key role in driving the flow as well as the arbitrage factors.