Foreign Exchange Reserves, In The Process Of Industrialization In Developing Countries

Changes in foreign exchange reserve result from changes in the balance of payment, and the changes in balance of payment is a manifestation of the ability to share the world economy. Most developing countries began their industrialization in 1950s; the industrialization bring about economic development, industrial structure upgrade and the international competition; these changes dominate the balance of payment's changes; changes in foreign exchange reserve is these changes' results. When analyzing foreign exchange reserve of developing country in industrialization process, the article uses historically and dynamic perspective to research, the quantitative and qualitative methods used in the analysis also.The paper includes mainly the foreign exchange reserves in international monetary system, industrialization and the optimal foreign exchange reserves, the comparative analysis of foreign exchange reserve of developing countries. The asymmetry of international monetary system has a negative impact on foreign exchange reserves of developing countries in the size, structure and management; The optimal foreign exchange reserves of developing countries is best suited to the process of industrialization with the size of the reserve, the reserve structure, choice of currency; which determines various factors must be taken into account determining the optimal foreign exchange reserve of developing countries. The comparative analysis of foreign exchange reserve of developing countries uses samples of the large developing countries; with a view of the comparative analysis of Brazil, India and South Korea's foreign exchange reserves in the process of industrialization from the foreign trade, foreign direct investment and financial market's points. In the last chapter of the paper, the article firstly gives a analysis of Chinese foreign exchange reserves, the reason of Chinese foreign exchange reserve in industrialization process rising sharply and Chinese foreign exchange reserve management issues in the use of the internationally comparative analysis. The article on the final gives a summary of research results.The innovation of the paper is that the analysis of foreign exchange reserves of developing countries is combined into the scope of industrialization. The background of developing countries' industrialization is the economic globalization, which lead the industrialization to have different paths to choose. The "big market effect" of economic globalization expands the scope of the balance of payments, the "turbulence effect" of globalization lead developing countries to take the initiative to strengthen the will of the reserves.