Research on the Influencing Factors of RMB Internationalization in the Process of the Belt and Road Initiative

DOI

10.2991/icmess-18.2018.301How to use a DOI?

Keywords

RMB Internationalization; Influencing Factors; The Belt and Road; Stability of RMB Currency Value; Economic Freedom

Abstract

The aim of this study is to explore what factors influence RMB internationalization in the process of the Belt and Road. It firstly makes a summary of the important influencing factors, then sets up a semi-logarithmic model to quantitatively analyze these factors, and finally puts forward suggestions for the steady development of RMB internationalization. Through literature review, it is found that since the Belt and Road initiative was put forward, RMB has been used more extensively in the surrounding countries and regions. Through quantitative research, it is found that with China's GDP as a share of world GDP, the scale of imports and exports of goods and services, and economic freedom are all positively related to the internationalization of RMB; the inflation rate and the volatility of real effective exchange rate are negatively related to it. This paper suggests that China should vigorously develop the national economy, expand the trade scale and maintain the stability of the RMB currency value. Meanwhile, it should also improve the market mechanism and increase economic freedom under the guidance of the central government. The marginal contribution of this study is to add to the econometric model an explanatory variable of economic freedom representing the impact of the Belt and Road initiative.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Tingting Wu
AU  - Rui Tang
PY  - 2018/06
DA  - 2018/06
TI  - Research on the Influencing Factors of RMB Internationalization in the Process of the Belt and Road Initiative
BT  - Proceedings of the 2018 2nd International Conference on Management, Education and Social Science (ICMESS 2018)
PB  - Atlantis Press
SP  - 1366
EP  - 1372
SN  - 2352-5398
UR  - https://doi.org/10.2991/icmess-18.2018.301
DO  - 10.2991/icmess-18.2018.301
ID  - Wu2018/06
ER  -