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Policy Briefs

Heller-Hurwicz Economics Institute publishes policy briefs to translate and communicate policy relevant economic research to a broad audience. Together, they showcase the breadth of research conducted in connection to the Institute. Contributors include faculty, alumni, advisory board members and other experts affiliated with the Institute.

China skyline

POLICY BRIEF: Deciphering China’s Puzzling Capital Flows

While China’s inflow of foreign direct investment surged in the early 1990s, very little came from technologically advanced nations. Rather, much of China’s capital inflows and outflows were round-trip transactions routed through the United Kingdom Islands and Hong Kong to take advantage of tax policies and industrial policies aimed at increasing foreign investment.