Professor Xiang Li, PhD

Current Position

since 1/19

Head of the Research Group Financial Integration, Economic Growth and Financial Stability

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

since 10/18

Assistant Professor of Economics

Martin Luther University Halle-Wittenberg

since 10/18

Economist in the Department of Macroeconomics

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

Research Interests

  • international finance
  • Chinese economy
  • open economy macroeconomics

Xiang Li is Assistant Professor of Economics at Martin Luther University Halle-Wittenberg and a member of the Department of Macroeconomics at IWH since October 2018. Her research focuses on international finance.

Xiang Li received her two bachelor's degrees and her PhD from Peking University.

Your contact

Professor Xiang Li, PhD
Mitglied - Department Macroeconomics
Send Message +49 345 7753-805 Personal page


Working Papers

China’s Monetary Policy Communication: Frameworks, Impact, and Recommendations

Michael McMahon Alfred Schipke Xiang Li

in: IMF Working Paper No. 18/244, 2018


Financial markets are eager for any signal of monetary policy from the People’s Bank of China (PBC). The importance of effective monetary policy communication will only increase as China continues to liberalize its financial system and open its economy. This paper discusses the country’s unique institutional setup and empirically analyzes the impact on financial markets of the PBC’s main communication channels, including a novel communication channel. The results suggest that there has been significant progress but that PBC communication is still evolving toward the level of other major economies. The paper recommends medium-term policy reforms and reforms that can be adopted quickly.

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Within Gain, Structural Pain: Capital Account Liberalization and Economic Growth

Xiang Li Dan Su

in: New Structural Economics Working Paper No. E2018010, 2018


This paper is the first to study the effects of capital account liberalization on structural transformation and compare the contribution of within term and structural term to economic growth. We use a 10-sector-level productivity dataset to decomposes the effects of opening capital account on within-sector productivity growth and cross-sector structural transformation. We find that opening capital account is associated with labor productivity and employment share increment in sectors with higher human capital intensity and external financial dependence, as well as non-tradable sectors. But it results in a growth-reducing structural transformation by directing labor into sectors with lower productivity. Moreover, in the ten years after capital account liberalization, the contribution share of structural transformation decreases while that of within productivity growth increases. We conclude that the relationship between capital account liberalization and economic growth is within gain and structural pain.

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