Research On The Effect Of Outward Foreign Direct Investment On The Internationalization Of RMB

As China‘s mode of opening-up is changing from trade pattern to investment pattern,it‘s necessary for the internationalization of RMB to make an adjustment to the development path and new driving force.A lot of studies have begun to pay attention to the effect of the outward foreign direct investment on the internationalization of RMB.Based on the comparative analysis under historical evolution,this thesis have studied the effect of the OFDI on the internationalization of RMB by exploring the general rules of currency internationalization,the ways and paths of currency internationalization for China and Japan which are both under the same economic development stage and the mechanism behind the effect.From the realistic background,after elaborating the core research content,the innovation points and inadequacies,the thesis has reviewed the relevant research literature at home and abroad in four aspects which are trade settlement,international balance of payments,outward FDI and experience of the internationalization of Yen.By reviewing the literatures,we have found that the existing literatures on the currency internationalization are lacking in the empirical research and mechanism analysis on the effect of outward FDI on the internationalization of RMB.There are few of literatures having studied the pushing ways of internationalization of RMB in the current economic development stage by comparative analysis under historical evolution.The inadequacy of existing literatures is also the topic and research key points of this thesis.The paper has established an analysis framework of the influential mechanism of outward FDI on currency internationalization.Based on the analysis of the historical evolution rule and influencing factors of currency internationalization,we have found that currency internationalization is a dynamic change in the long run and a result of comprehensive effect of various aspects of national development,it cannot be separated from the objective law in different economic development stages.Specific to the level of outward FDI,there are direct and indirect effects of outward FDI on currency internationalization.The outward FDI can not only be the effective channel of the local currency outflow to meet the foreign demand for local currency,but also create conditions for the local currency backflow.Furthermore,the outward FDI could affect currency international trough international trade,international division etc.The analysis of mechanism has provided theoretical foundation for further studies.After the analysis of mechanism,we have taken Yen as an example to compare the evolution of Japan‘s outward FDI and internationalization of Yen and make empirical tests for the purpose of finding historical evidence for research on the effect of outward FDI on currency internationalization.From the analysis on comparison of the evolution of Japan‘s outward FDI and internationalization of Yen,we could find that the evolution of internationalization of Yen is closely connected with the development process of Japan‘s outward FDI.Then the empirical tests have proved the positive promoting effect of outward FDI on internationalization of Yen.Generally speaking,Japan‘s outward FDI could create effective outflow channel and market for the international use of Yen in the fierce international competition with other international currency.Thus,the evidence of internationalization of Yen has verified that the outward FDI is a key factor for currency internationalization.At the part of the analysis on the effect of China‘s outward FDI on internationalization of RMB,we have described the present development status of China‘s outward FDI and internationalization of RMB at first,and then made empirical analysis on the effect of China‘s outward FDI on internationalization of RMB through the method which is used for the study of internationalization of Yen.Finally,we have found the route of the influence of outward FDI on internationalization of RMB on the basis of comparison of currency internationalization between China and Japan.According to the result of analysis,we come to know that China‘s outward FDI can promote the internationalization of RMB and the influential path can be separated into two parts which are enterprise level and macroeconomic level.As the effect of outward FDI could change in the future,it‘s necessary to make prospective analysis for the effect of China‘s outward FDI on the internationalization of RMB.On the basis of current problems with internationalization of RMB,we have forecasted the possible effect of China‘s outward FDI on internationalization of RMB by empirical analysis.According to the result,the development of outward FDI in the future can not only promote the outflow of RMB,but also become the new driving force of internationalization of RMB.The outward FDI could be beneficial for the macro layout of RMB offshore market and overcoming the ?Triffin dilemma? which the internationalization of RMB may encounter.The effect of outward FDI is the result of natural selection during the evolution of internationalization of RMB and the objective requirement of internationalization of RMB under a certain economic development stage.At last,the paper has put forward some suggestions about the way through which the outward FDI promote the development of internationalization of RMB in the background of "The Belt and Road" strategy.The development of international financial institutions like AIIB,the construction of the industrial park and structural reform and improvement of legal system are all the effective ways.The theoretical significance of this paper can be described from three aspects.Firstly,the paper has enriched the theoretical research on the driving factors of currency internationalization and provided theoretical foundation for research on the effect of outward FDI on internationalization of RMB.Besides,the research has a high theoretical universal applicability.It can provide a theoretical reference for different kinds of currency internationalization.Secondly,the paper has greatly enriched and broadened the scope of theoretical research on the internationalization of RMB.Thirdly,the paper has led the realistic strategies and problems about ?The Belt and Road? and internationalization of RMB to the theoretical level and found theoretical proof of policy researches.The practical significance can be mainly reflected in three aspects.Firstly,the paper has get a new sample of the research on the internationalization of RMB through the comparison of currency internationalization between China and Japan under the same economic development stage.This research has provided specific experiences for the growth path of internationalization of RMB.The problem that the internationalization of RMB could encounter in the future has been explicit.Secondly,the paper has clarified the mechanism of the effect of outward FDI on internationalization of RMB and found the point of penetration for promoting the internationalization of RMB effectively.It‘s quite important to grasp the development path of internationalization of RMB all round.Thirdly,this thesis has forecasted further development of the internationalization of RMB and analyzed the promoting tactics in the background of ?The Belt and Road? strategy.The rationalization proposals have high practical significance.There are three innovation points in the research of this paper,which are unique perspective,comprehensive mechanism analysis and groundbreaking empirical analysis and forecast.In the respect of unique perspective,the paper has made good use of international comparison under the law of historical evolution to study the same means and path of currency internationalization among different countries under a certain economic development stage.This study has provided a new way of thinking and perspective for research on currency internationalization.In the respect of comprehensive mechanism analysis,the paper has studied the effect mechanism of outward FDI on currency internationalization by normative analysis and model construction.It is important supplement for research on the driving factors and ways of currency internationalization and the internationalization of RMB.At last,the empirical analysis and forecast about the effect of outward FDI on internationalization of RMB in this thesis is groundbreaking.On one hand,the empirical analysis could complement the lack of empirical tests in the current literatures.On the other hand,the forecast can provide empirical support for research on the promoting ways of the internationalization of RMB.The lack of statistical data and materials has resulted in two shortages of this paper.For one thing,only time series data has been used in the empirical analysis.There is no statistical data on the internationalization of RMB which is specific to the industry and enterprise level.We cannot use panel data to analyze the micro-level effect in this thesis.For another,we could only put forward ideas and suggestions for promoting the internationalization of RMB generally.The suggestions cannot go deep into the international operation of transnational enterprise.As the improvement of statistical data and materials,the problems above will continue to be intensively studied in the future.