National power and currency internationalization amid increased geopolitical risk: nonlinear insights from PSTR model

Gaofeng Yin, Tao Guan and Hanning Song

Applied Economics Letters, 2024, vol. 31, issue 19, 2059-2066

Abstract: Geopolitical risk events have historically influenced a country’s monetary dominance. Higher geopolitical risk strengthens the correlation between national power and currency internationalization, leading to nonlinear impacts. Using a panel smooth transition regression (PSTR) model, we identify and measure the nonlinearities that affect currency internationalization. Our study highlights the key factors involved and indicates that geopolitical risk can significantly amplify the impact of a country’s share of global GDP and exchange rate log-returns on currency internationalization.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2023.2210807 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:31:y:2024:i:19:p:2059-2066

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2023.2210807

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().