Research Of Evolution And Influencing Factor Of Us International Investment Position

IIP, which is short of international investment position, is a vital part of the international account system. It is important to measure and control the risk in the background of economic globalization. IIP analyze one country’s external economy from the stock perspective. The United States, as the modern world’s most powerful economic entity, its economic trend has been the focus of national studies. US has a developed financial market and thus its international investment position has its special research value.In 1989, US assets exceeded US liabilities and thus international investment position turned to a negative number. The phenomenon that IIP of US turned to negative one showed the decline of US dollar hegemony. On one hand, US have its own problems in economic development, such as the situation of national economy, price of asset, interest rate and economic policy. On the other hand, both comprehensive strength of national economy and international status and influence have been significantly improved of other countries. Therefore, the research of US IIP is to explore the factors that influence on the international competition and monetary status among the world of dollars. Importantly, China can use for reference to make China be a strong country on finance and economy. Currently, domestic scholars tend to use international balance of payment other than the international investment position to analyze economic situation. However, it is not comprehensive to analyze economy only from the flow perspective. Therefore, this paper will analyze external economy of US in recent decades with IIP which is from the stock perspective. The more important thing is to provide reference for China. On one hand, China has the biggest creditor’s rights to US, therefore, US’s exchange rate and the status of dollars will directly affect the exchange rate and value of currency reserves of China. On the other hand, China has been making efforts to RMB internationalization in these years and to enable RMB to be the international clearing monetary. The changes on structure of US IIP reflect evolvement of dollars, especially after Bretton Woods system unraveled. China can draw lesson from the US IIP.This paper researches IIP of US from five perspectives.Firstly, it introduces the background, significance of IIP, bibliographical information, train of thought and methods of research, structure of paper, innovation and lacks.Secondly, it describes the evolvement process and structural features of assets, liabilities and net international investment position according to the data from BEA.Thirdly, use time series model to analyze the IIP of US. Establish model for assets, liabilities and net international investment position to analyze.Do unit root and cointegration test on economic variables, such as exchange rate, interest rate and capital price and then establish multiple linear regression model and impulse response analysis in the purpose for researching factors that affect IIP of US.Finally, compare current position and structure feature of Chinese IIP to US’s and point out the problems on Chinese IIP, and give suggestion for further development of Chinese international investment position.