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We empirically characterize how China is internationalizing the Renminbi by selectively opening up its domestic bond market and propose a dynamic reputation model to understand China's internationalization strategy. While previously closed to foreign investors, China has recently allowed major...
Persistent link: https://www.econbiz.de/10013295962
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international trade and foreign direct investment (FDI) in developing countries along “One Belt and One Road”. We selected seven … a fixed effect model to analyze the relationship of exchange rate volatility with international trade and FDI. The … results of this paper revealed that exchange rate volatility affects both international trade and FDI significantly but …
Persistent link: https://www.econbiz.de/10011964012
that capital flows from China to Africa in the form of mainly economic cooperation projects, but also FDI contribute to an …
Persistent link: https://www.econbiz.de/10011992320
This research paper attempts to estimate the bilateral trade of Pakistan with SAARC countries using a gravity model of trade. This panel study covers the period from 2003 to 2016. The empirical results are obtained through pooled OLS, fixed-effects, and random-effects estimators. On the basis of...
Persistent link: https://www.econbiz.de/10012145455
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In this paper we present a new method for estimating market integration under a commodity money system such as that which existed in Europe until the demise of the gold standard. The approach is based on the analysis of deviations between exchange rates and parity, which under conditions of a...
Persistent link: https://www.econbiz.de/10009303501
The East Asian monetary integration process is at the crossroads. Given very benign liquidity conditions in the US, the prevailing common US dollar peg has contributed to growing macroeconomic and financial instability in the region. This has sparked demands to embark on an independent monetary...
Persistent link: https://www.econbiz.de/10010436724
This paper surveys a wide body of economic literature on the relationship between currencies and trade. Specifically, two main issues are investigated: the impact on international trade of exchange rate volatility and of currency misalignments. On average, exchange rate volatility has a negative...
Persistent link: https://www.econbiz.de/10013118744
In this paper we analyze the effects of the real exchange rate volatility on South Africa's trade flows with the European Union over the period 1980 to 2009. Our study uses quarterly trade flows on South Africa's exports and imports and utilizes the bounds testing approach to cointegration, and...
Persistent link: https://www.econbiz.de/10013090733