本文扩展了由Chari, Kehoe和McGrattan最初开创的Business Cycle Accounting 方法，利用两国开放经济模型研究中国经常账波动的根源。本文从模型得出的五个一阶条件方程和两个产出方程中，量化衡量了代表不同市场扭曲程度的7个变量。其中包括两国分别的生产力扭曲程度、劳动市场扭曲程度、资本市场扭曲程度，以及两国风险共担的程度。本文通过将得出的代表市场扭曲程度的变量逐一逆向回代入模型中，进一步分解了各个变量对中国经常账波动的贡献度。利用1978年至2010年中国和美国的数据，本文得出结论认为中国的经常账波动与劳动力市场扭曲具有最密切的关系，其次是资本市场扭曲。生产力的提高和中美两国的风险共担程度对中国经常账的影响甚微。同时结果表明，中美两国的真实利率差距也对中国经常账有显著影响，中国的真实利率相对美国而言较高。 / This paper extends the original Business Cycle Accounting exercise developed by Chari, Kehoe, and McGrattan to a two-country open economy model. To identify the sources of China’s current account fluctuations, I measure seven wedges from five first-order conditions and two productivity functions, including the productivity wedges, labor wedges, and investment wedges in both China and the US, as well as the risk sharing wedge between the two countries. Then I incorporate the measured wedges back into the model to decompose their contributions to the behavior of real current account. With the use of real data (beginning 1978) on China and the US, the accounting procedures suggest that the behavior of China’s current account is best explained by labor wedges, followed by investment wedges. The productivity wedges and risk sharing wedge between the two countries impose minor effects. Results also indicate that the spread of real interest rates in China and the US significantly influences China’s current account surplus, and that the real interest rates in China is relatively higher than those of the United States. / Detailed summary in vernacular field only. / Yuan, Xiaochuan. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2012. / Includes bibliographical references (leaves 71-76). / Abstracts also in Chinese. / Abstract --- p.i / 摘要 --- p.ii / Acknowledgements --- p.iii / Chapter 1 --- Introduction --- p.1 / Chapter 2 --- Literature on the Current Account of China --- p.3 / Chapter 2.1 --- Saving and investment --- p.4 / Chapter 2.2 --- Financial imperfections --- p.5 / Chapter 2.3 --- Exchange rate --- p.7 / Chapter 2.4 --- Income and growth --- p.9 / Chapter 2.5 --- Multiple reasons --- p.10 / Chapter 2.6 --- Improvement policies --- p.11 / Chapter 3 --- Facts on China’s Current Account --- p.13 / Chapter 4 --- Two-Country Open Economy Model --- p.19 / Chapter 4.1 --- Household --- p.19 / Chapter 4.2 --- Firm --- p.20 / Chapter 4.3 --- Government --- p.21 / Chapter 4.4 --- Two-country problem --- p.21 / Chapter 4.5 --- Definitions of the wedges --- p.23 / Chapter 5 --- Measuring the Wedges --- p.25 / Chapter 6 --- Accounting Procedure --- p.32 / Chapter 7 --- Further Implications --- p.38 / Chapter 8 --- Conclusions --- p.41 / Chapter 9 --- Data Appendix --- p.46 / Chapter 9.1 --- Data source --- p.46 / Chapter 9.2 --- Variables --- p.46 / Chapter 9.3 --- Parameters --- p.49 / Chapter 9.4 --- Robust check --- p.50 / Chapter 10 --- References --- p.71

This paper uses general equilibrium static and dynamic models to examine the economic and environmental effect of capital liberalization policy based on the general equilibrium static and dynamic models. The first topic develops a static general equilibrium model of a small open economy in the presence of unemployment with three sectors: a nontradeable sector, a tradeable sector, and an environmental sector. In the second section, I use a dynamic general equilibrium model of a small open economy in the presence of unemployment with three sectors: an importable sector, an exportable sector, and an environmental sector. In the last section I analyze the environmental effect of a developing country's capital liberalization policy when the consumer values the environment. The dynamic model, based on intertemporal optimization, focuses on the role of how land development is affected by foreign capital investment. The time-varying dynamic policies, such as planned permanent and planned gradual capital liberalization, are investigated to analyze the dynamic path of land and foreign capital stock in the short-run. The major findings of this paper are described as follows. In the long-run dynamic analysis, the production of the environmental good in a developing country is reduced when the developing country has a positive net income effect due to further capital liberalization, if there is an initial shortage of capital investment. The reduction of the environmental good might have a significant welfare impacts on the welfare of a country if the consumer places high value on the environment. This result indicates that countries with less environmental awareness are likely to improve the welfare of their countries whereas countries with strong environmental awareness are likely to reduce the welfare of their countries with capital liberalization. The other important result is that inclusion of the environment in the consumer's utility function slows down the pace of land development in the short-run dynamic model if the developing country lowers its capital investment tax rate. / Graduation date: 1996