China&Apos;S Growth, Stability, and Use of International Reserves

34 Pages Posted: 20 Dec 2013 Last revised: 9 Jun 2021

See all articles by Joshua Aizenman

Joshua Aizenman

University of Southern California - Department of Economics; National Bureau of Economic Research (NBER)

Yothin Jinjarak

Victoria University of Wellington - School of Economics & Finance

Yothin Jinjarak

University of London - SOAS - Department of Financial and Management Studies

Nancy Peregrim Marion

Dartmouth College - Department of Economics

Date Written: December 2013

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.

Suggested Citation

Aizenman, Joshua and Jinjarak, Yothin and Jinjarak, Yothin and Marion, Nancy P., China&Apos;S Growth, Stability, and Use of International Reserves (December 2013). NBER Working Paper No. w19739, Available at SSRN: https://ssrn.com/abstract=2370195

Joshua Aizenman (Contact Author)

University of Southern California - Department of Economics ( email )

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National Bureau of Economic Research (NBER) ( email )

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Yothin Jinjarak

Victoria University of Wellington - School of Economics & Finance ( email )

P.O. Box 600
Wellington 6001
New Zealand

Yothin Jinjarak

University of London - SOAS - Department of Financial and Management Studies ( email )

College Buildings
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HOME PAGE: http://https://sites.google.com/site/yothinjinjarak/

Nancy P. Marion

Dartmouth College - Department of Economics ( email )

Hanover, NH 03755
United States
(603) 646-2511 (Phone)

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