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t growth is slowing, and the current-account deficit expand commercial Banks of the same with the fear of currency depreciation incite, can destroy their investment. [in October 1997, the Philippine peso,

Malaysian ringgit and rupiah downspin still as a capital continue to quit, lead to a disastrous import costs soaring combination, the private sector's external debt service rising cost, raise interest rates, spiking economic activities, and a chain reaction of bankruptcies. 26

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With the outstanding policy maintain the stable exchange rate, and in the developing countries to open capital account of the risks, the story is a very good example, financial open, highly industrialized countries and those who are still in a state of development to depending on each other. In the 1997 Asian financial crisis, cause significant wealth from developing country to developed countries transfer, depending on each other.

Capital account liberalization

The last section of the capital attempt to explain the convertibility relationship, a state to choose exchange rate system and policy between, also is the foreign and domestic investors the ability to convert their currencies into or out of the country of the currency, they hope the investment or reduce the investment. A country's capital account liberalization of capital inflows include four major areas: foreign direct investment "brick," such as commercial interests or the real estate, the foreign investment in domestic stock and bond, and "foreign lenders get domestic assets of foreign countries to buy domestic borrowers, can borrow short-term or long-term term. 27

Capital outflow liberalization is a completely different questions, because it involves whether domestic or foreign investment with foreign pull the plug.

About the four types of international capital flows of the fluctuation of different a general consensus has been reached. They are studying the "financial globalization on the influence of the developing countries," purusha Germany, etc. For points out, "the structure of the foreign direct investment at least volatile category of private capital flows to developing countries, it is strange, because its long-term and relatively fixed properties." Nerd write, "securities investment flows, tend to be far more than extensive experience fluctuations, and prone to evidence suddenly reverse." 28

Although these results are generally in Malaysia's capital account policy of contemporary history, one can't take on foreign direct investment to be a long-term long-term luxurious, especially China and India, two developing countries cannot be likened to low cost labor reserve national east gradually and of the booming domestic market.

Historically, Malaysia's capital account of a free trade policy from 1972-when the government to seek open free trade area, and attract foreign direct investment-up, until the 1990 s, when government incentives, and eliminate capital gains and dividend taxes and foreign securities investment. 28

 

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These decisions in the distribution is clear: Malaysia policymakers for foreign direct investment and foreign mutual fund managers attention and money and embrace the economy to foreign investment strategic premise. In fact, the foreign direct investment in Malaysia the main attraction is still in the union heavy government restrictions, hampering the wage growth 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。