Study on Sudden Stops of Capital Flow during International Financial Crises

This paper firstly quantitatively defines the sudden stops,analyzes and discusses the sudden stops faced by emerging economies.By the research on the relationship between capital flows and financial crisis,and analysis of macro factors inducing sudden stops,the paper uses the unbalanced data from 1980 to 2009 of 23 emerging countries to conduct an empirical research with Binary Regression and Poisson Regression.The study finds that the openness of finance and trade industry may not contribute to the sudden stops in capital.Stable exchange rate system helps decrease the possibility of shocks of international capital flows.It also shows that oversize external debt and surges in capital flows will increase the possibility of the crisis.This paper has some meaningful results in making policies and provides some references in china's monitoring and control in capital flows.