Media narratives drive capital flows into China – NBER paper

Sentiment in news articles impacts investment decisions, regardless of country’s economic fundamentals

Renminbi

The tone of English-language news articles affects capital flows into China regardless of the true state of the country’s economy, research from the US National Bureau of Economic Research (NBER) has found.

The working paper uses natural language processing to extract sentiment and risk perceptions from 1.5 million articles published in 38 newspapers across 15 economies between 2007 and 2022.

The authors – Isha Agarwal, Wentong Chen and Eswar Prasad – note that the Chinese economy is unusually

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.