Analysis of the Factors Impacting the Internationalization of RMB by Belt and Road Initiative(BRI)

Hanjing Quan

《Frontiers in Economics and Management》 4卷1期 (2023/01) Pp. 57-61

https://doi.org/10.6981/FEM.202301_4(1).0004

摘要

In this paper, we analyze and sort out the process and status of Renminbi(RMB) internationalization in China in a systematic way, dividing the timeline of RMB internationalization by the "Belt and Road Initiative" and dividing it into a series of processes such as the rapid development of the initial stage, the short‐term stagnation stage, and the ice‐breaking stage. After collating and reading the relevant literature at home and abroad, academics found that there are relatively few quantitative studies on the two‐way effect between "Belt and Road " and RMB internationalization, and there are limitations in selecting research variables. The author integrates the existing empirical analysis of the factors influencing the internationalization of RMB in the "Belt and Road Initiative" into positive and negative influencing mechanisms, which provides theoretical support for the subsequent empirical research. The results show that the improvement of economic strength, financial market, and real exchange rate promoted by the "Belt and Road" initiative helped the internationalization of RMB. In contrast, the shortage of Outward Foreign Direct Investment (OFDI), large fluctuations of exchange rate and currency inertia are not conducive to the internationalization of RMB.

關鍵字

Belt and Road Initiative(BRI) ； RMB Internationalization ； Empirical Analysis

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