A Research on the Determinants of Renminbi(RMB) to be the Invoicing and Settlement Currency in East Asia ——In the Perspective of Final Goods Market Provider
A Research on the Determinants of Renminbi(RMB) to be the Invoicing and Settlement Currency in East Asia ——In the Perspective of Final Goods Market Provider
WANG Shan-shan1, HUANG Mei-bo2
(1.School of Business Xiamen University of Technology, Xiamen 361024, China; 2.School of Economic Xiamen University, Xiamen 361005, China)
Abstract Whether China can be the Final Goods Market Provider in East Asia determines RMB’s status as the international invoicing and settlement currency. This paper sets up a dynamic panel data model and uses two-stage generalized method of moments to explore the determinants of China being the final goods market provider in East Asia. By comparing the empirical results of the model with the data from 1998 to 2005 and that from 2006 to 2011, we find that, the stability of RMB’s exchange rate, the situation of processing trade and the structure of economic growth are the direct determinants of China being the Final Goods Market Provider in East Asia, which further determine RMB’s status as the invoicing and settlement currency in East Asia.
WANG Shan-Shan,HUANG Mei-Bei. A Research on the Determinants of Renminbi(RMB) to be the Invoicing and Settlement Currency in East Asia ——In the Perspective of Final Goods Market Provider. Economic Survey, 2015, 32(3): 0144.
2015, Vol. 32 
