Abstract: This paper discusses the relationships between the imbalance of international payments and the quality of economic growth in theory. By adopting the methods of 3SLS and System-GMM, it conducts an empirical test with China’s annual data from 1982 to 2011. The regression results show that the imbalance of international payments influences the changing quality of economic growth through the macroeconomic stability, that the imbalance of payments is negatively related to the quality of economic growth, among which the imbalance of current accounts has increased the volatility of economic growth, and that the imbalance of capital account is an important factor affecting the inflation volatility. Meanwhile, the economic growth volatility has also intensified the inflation volatility. Therefore, to adjust the imbalance of international payments is helpful in promoting macroeconomic stability and improving the quality of economic growth in China.

Key words: imbalance of international payments; quality of economic growth; economic fluctuations