This paper examines the role of financial openness for currency internationalisation.We provide a theoretical synthesis on the economic and financial channels that financial openness might affect currency internationa...This paper examines the role of financial openness for currency internationalisation.We provide a theoretical synthesis on the economic and financial channels that financial openness might affect currency internationalisation.Historical experiences from the UK,the US,Japan and Germany show the essential role played by financial policies to promote one currency’s international status.We collect recent data of a panel of countries to provide an in-depth empirical analysis on how financial openness would affect a currency’s acceptance in international official reserves.We find strong evidence that portfolio positions generally have a larger impact on the currency’s share in international reserves than FDI.Moreover,portfolio positions in the liability side,especially foreign investments in domestic debt securities,have a statistically significant and economically important effect on currency internationalisation.Our results have implications for China,highlighting the specific effects of financial policies on RMB internationalisation.展开更多
In this paper,we investigate the reasons for the establishment and operation models of China’s Local Government Financing Vehicles(LGFVs).We also outline the current literature on the structural arrangement and the d...In this paper,we investigate the reasons for the establishment and operation models of China’s Local Government Financing Vehicles(LGFVs).We also outline the current literature on the structural arrangement and the developments of LGFVs.Moreover,we employ the empirical analysis to examine the driv-ing factors of the financial performance of LGFVs.Using 1,042 LGFVs that issued debt securities during the period 2011–2016,we find that the financial performance of LGFVs is positively asso-ciated with local tax revenues,local education levels,local saving deposits,and firm size but negatively associated with local gov-ernment spending and firm leverage ratios.Based on our empir-ical findings,we finally propose policy recommendations for the establishment of relevant investment and financing platforms.展开更多
基金supported by fund for building world-class universities(disciplines)of Renmin University of China.[Project No.KYGJC2020001]the National Natural Science Foundation of China[Grant No.71903191]the Fundamental Research Funds for the Central Universities,and the Research Funds of Renmin University of China[Project No.20XNH004].
文摘This paper examines the role of financial openness for currency internationalisation.We provide a theoretical synthesis on the economic and financial channels that financial openness might affect currency internationalisation.Historical experiences from the UK,the US,Japan and Germany show the essential role played by financial policies to promote one currency’s international status.We collect recent data of a panel of countries to provide an in-depth empirical analysis on how financial openness would affect a currency’s acceptance in international official reserves.We find strong evidence that portfolio positions generally have a larger impact on the currency’s share in international reserves than FDI.Moreover,portfolio positions in the liability side,especially foreign investments in domestic debt securities,have a statistically significant and economically important effect on currency internationalisation.Our results have implications for China,highlighting the specific effects of financial policies on RMB internationalisation.
基金supported by the MOE Project of Key Research Institute of Humanities and Social Sciences at Universities[16JJD790056]Fundamental Research Funds for the Central Universities,and the Research Funds of Renmin University of China[13XNJ003 and 20YYA01].
文摘In this paper,we investigate the reasons for the establishment and operation models of China’s Local Government Financing Vehicles(LGFVs).We also outline the current literature on the structural arrangement and the developments of LGFVs.Moreover,we employ the empirical analysis to examine the driv-ing factors of the financial performance of LGFVs.Using 1,042 LGFVs that issued debt securities during the period 2011–2016,we find that the financial performance of LGFVs is positively asso-ciated with local tax revenues,local education levels,local saving deposits,and firm size but negatively associated with local gov-ernment spending and firm leverage ratios.Based on our empir-ical findings,we finally propose policy recommendations for the establishment of relevant investment and financing platforms.
