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

Joshua Aizenman, Yothin Jinjarak and Nancy Marion ()

No 19739, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: F3 F31 F32 F36 F4 (search for similar items in EconPapers)
Date: 2013-12
New Economics Papers: this item is included in nep-opm
Note: IFM
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published as Joshua Aizenman & Yothin Jinjarak & Nancy Marion, 2014. "Chinaâs Growth, Stability, and Use of International Reserves," Open Economies Review, Springer, vol. 25(3), pages 407-428, July.

Downloads: (external link)
http://www.nber.org/papers/w19739.pdf (application/pdf)

Related works:
Journal Article: China’s Growth, Stability, and Use of International Reserves (2014)
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:nbr:nberwo:19739

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w19739

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().