The Influence Of Outward Driect Investment Upon The Internationalization Of Renminbi Under The Road And Belt

Based on the current international monetary system,dollar will be as a single world currency,which results the "Ttiffin dilemma" doomed to no solution.The demand side for this currency is emerging economies.The demand for reserve currencies in emerging economies is far greater than the amount available in advanced economies.How to reconcile the supply and demand imbalance of the reserve currency?With the enhancement of our economic,our economy linked closely with the world 's,and the internationalization of CNY has become a trend and goal in our country.As the biggest demand side of the reserve currency,China is also an important part of global imbalances.The internationalization of CNY can reduce our demand as well as to provide a new reserve currency to emerging markets.It can promote the coordination of reserve currency supply and demand,it also enhance the stability of the international monetary system.Therefore,CNY internationalization is imperative.In order to promote the internationalization of the CNY,China formally put forward "The Belt and Road" strategy in 2015.It is worth noting how to steadily advance the internationalization of the CNY under the background of "The Belt and Road".Firstly,in this paper,through reviewing the related literature,we found the foundation about the relation of ODFI and the domestic currency internationalization.Secondly,finding the path of how OFDI effect the internationalization of domestic currency and discussing the three paths.OFDI from three main path to influence its home country currency internationalization,i.e.,the direct effect of path,the foreign direct investment spillover effect of foreign direct investment path and the expected effect of the foreign direct investment.Finally,based on the panel data,selected the 2006-2015 under the countries(including 48 countries)along the One Belt And One Road and set up the model.According to a panel data model,the results show that the accumulation of OFDI,OFDI stock has a significant effect on CNY internationalization,the larger the stock of OFDI upon the countries along the Belt and Road,the greater the promotion of the CNY internationalization.Besides,international trade has a significant effect over CNY internationalization.Meanwhile,the international trade hold a dominant position.With imposing the strategy of The Belt and Road,OFDI plays a direct impact on international trade.Meanwhile,the more international trade we have,the better promote CNY internationalization.