China’s Growth, Stability, and Use of International Reserves

Joshua Aizenman, Yothin Jinjarak and Nancy Marion ()

Open Economies Review, 2014, vol. 25, issue 3, 407-428

Abstract: Since the onset of the global financial crisis, China and the U.S. have reduced their current-account imbalances as a share of GDP to less than half their pre-crisis levels. For China, the reduction in its current-account surplus post-crisis suggests a structural change. Panel regressions for a sample of almost 100 countries over 1983–2013 confirm that the relationship between current-account balances and economic variables changed in important ways after the financial crisis. China’s rebalancing has been accompanied by a decline in its reserves-to-GDP ratio and greater outward FDI that, in turn, has mitigated reserve hoarding. Copyright Springer Science+Business Media New York 2014

Keywords: China’s Growth; Stability; International Reserves; Current account; Re-balancing (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/s11079-014-9308-x

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