The Impact Of Institutional Distance On The Internationalization Of RMB

In recent years,the status of the RMB in the international monetary and financial system has gradually been highlighted,but there is still a large room for improvement in its share of use.In recent years,in the face of major changes in the world that have not occurred in a hundred years,both the "Fourteenth Five-Year Plan" and the report of the 20 th National Congress of the Communist Party of China(CPC)pointed out that we should steadily and cautiously promote the internationalization of the RMB.To explore the path to promote the internationalization of the RMB is a realistic requirement to promote the formation of a new development pattern of double circulation.At present,scholars at home and abroad have done a lot of research on the influencing factors and realization path of RMB internationalization.However,most of the studies focused on the impact of China’s social and economic development factors and external environmental factors on the internationalization of the RMB,ignoring the impact of the path of "China’s optimizing the institutional environment in development,narrowing the institutional distance with developed countries,and improving the international recognition of China’s system" on the international acceptance of the RMB.Based on this,this paper collates the panel data of 48 countries from 2009 to2019,builds a benchmark model,discusses the direct effect of institutional distance on RMB internationalization,and conducts a national heterogeneity test based on whether the partner country is a "the Belt and Road" country.At the same time,it examines its specific impact mechanism through the intermediary effect test and the moderating effect test.The following conclusions are drawn:(1)The regulatory institutional distance has a significant direct promoting effect on the internationalization of RMB when the distance is positive,but has no obvious inhibiting effect on the internationalization of RMB when the distance is negtive.(2)The normative institutional distance has a weak direct role in promoting the internationalization of RMB under the positive institutional distance;Under the negtive institutional distance,the normative institutional distance has no obvious inhibitory effect on the internationalization of RMB.(3)The impact of cognitive institutional distance on the internationalization of RMB presents an "inverted U-shaped" relationship,that is,within a certain range,cognitive institutional distance promotes the internationalization of RMB,while beyond a certain range,it inhibits the internationalization of RMB.(4)From the perspective of national heterogeneity,the the Belt and Road countries have a greater impact on RMB internationalization than non the Belt and Road countries in terms of regulatory institutional distance,normative institutional distance,and cognitive institutional distance,which fully demonstrates the important role of the the Belt and Road policy in promoting RMB internationalization.(5)The influence of bilateral economic relations on the internationalization of RMB has an intermediary effect.(6)Bilateral political relations strengthen the positive impact of institutional distance on RMB internationalization.Based on the above research conclusions,this paper puts forward the following suggestions:(1)optimize China’s institutional environment,seize the opportunity of the superposition of changes;(2)Promote the joint construction of the the Belt and Road,and promote the international use of local currency based on the dual cycle pattern;(3)Play the role of bilateral relations and change the international monetary power structure and monetary governance.