Research On The Impact Of Trade Structure On The Currency Internationalization

The2008global financial crisis on the global economy caused a fatal blow, national dissatisfaction with the existing international monetary system gradually increased, in2012the U.S. debt ceiling issues led directly to the United States sovereign credit rating was lowered, and once again drawbacks of domination of the U.S. in international monetary system exposed. Calls for reform of the international monetary system growing, internationalization of the RMB has also ushered in the opportunity.In fact, the development of internationalization of the RMB has already begun, but the level of internationalization of the RMB is very low compared with the level of China’s economic strength and international trade of considerable international currency national currency, the internationalization of the RMB is still a a large room for improvement.Faced with the current development of the plight of RMB internationalization, we started thinking, what are the factors that play a key role in the development of today’s international currency, the currency of international factors are changing.Theoretical analysis related to the development of an international currency,the currency can be achieved through an international trade and international finance two paths. From the perspective of a country’s trade entity departure, the article focusing on the analysis of a country’s currency impact of international trade route entity. Previous studies have found that the trade size played a significant role in promoting of a country’s currency internationalization, but few scholars are concerned about the impact of trade on the currency structure of internationalization. In this paper, global exports of manufactured goods accounted for the two categories of products higher difference,use this microscopic indicators to measure a country’s trade structure, the impact of trade structure on international currency is significantly at empirical analysis.Concluded that the trade structure of a country’s currency internationalization has a significant impact can be seen from the empirical analysis, with the currency of international development and promote the role of trade structures bigger than a simple trade-scale effect. Meanwhile the impact of international economic strength of the currency has no significant economic strength of a country, and not spontaneous pushing the country’s currency internationalization.This revelation on the current development of China’s RMB internationalization is:Despite the current size of China’s trade has been very large, but the level of international currency renminbi internationalization level relative to trade fairly countries is very low; and2008financial crisis, the world’s major economies slumped, leading to decline in China’s foreign trade in face of such difficulties, adjust the structure of foreign trade, increase a high degree of product differentiation to exports, both to help solve the problems of the current decline in foreign trade, and the RMB to breakthrough the high trade-scale, low level of internationalization dilemma has a positive effect.The full text is divided into five parts. The first part of the literature review on the current international monetary and foreign scholars in the field of research and opinion research done mainly reviewed, provide theoretical support for the theoretical and empirical study. The second part of the text of the key concepts involved:trade structure,international monetary and currency internationalization and to define, and then from the perspective of the functions of money, analyzes the trade structure to promote the internationalization of the internal logic of the currency, the impact of currency internationalization of trade-related structural theory expounded. The third part describes the impact of trade structure on the major international currencies and the development of RMB internationalization.The fourth part is the empirical analysis. Take advantage of the current international currency countries (regions).1999-2012lastest yearly panel data, in a dynamic panel model, using first-order differential estimation method (DGMM) from the empirical to prove impact of a country’s trade structure on the country’s currency internationalization. The fifth part is the conclusions and policy recommendations. We draw the trade structure there is a significant positive effect on currency internationalization conclusions;trade scale, monetary inertia, inflation, financial strength and current account surpluses have accounted for a significant impact on the level of presence of international development money In the current RMB internationalization process of development, we will adjust the structure of foreign trade, trade entities play a role in promoting the internationalization of RMB; expand offshore renminbi bond issue, with the international financial markets to promote the internationalization of the RMB; while actively promoting the RMB exchange rate reform, improve domestic financial market system.