Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2023 International Conference on Management Research and Economic Development
Series Vol. 24 , 13 September 2023
Open
Access | Article
An Empirical Analysis of the Influencing Factor of International Reserve
* Author to whom correspondence should be addressed.
Abstract
International reserve refers to the assets that a country 's monetary authority can use to intervene in the foreign exchange market and pay the balance of payments at any time. With the development of China 's foreign economy, China 's foreign exchange reserves have grown rapidly since 1995, reaching a peak of $ 3.84 trillion in 2014.For a long time, international reserves have become one of the important academic topics actively studied and discussed by many economists at home and abroad. The purpose of this paper is to study the impact of various macroeconomic indicators on the scale of international reserves, in order to find out the most significant indicators that affect the scale of international reserves, and to provide a theoretical basis for optimizing international reserve management. By using Eviews to conduct a regression analysis on the data of the China statistic yearbook from 1981 to 2021, this paper attempts to find out the factor that influences the international reserve and put forward advice for improving international reserve management. According to the investigation of international reserves, economic scale, average import tendency and exchange rate, the final conclusion is that the impact of economic scale and average import tendency on the scale of international reserves is significant.
Keywords
international reserve, foreign exchange reserve, exchange rate, economic scale, propensity to import
References
1. Edwards, S. (1983). The demand for international reserves and exchange rate adjustments: the case of LDCs, 1964-1972. Economica, 50(199), 269-280.
2. Suss, E. C. (1980). The trade-off between exchange rate and reserve changes: theoretical and empirical evidence.[M]. Cambridge, Mass: Ballinger, 1980.
3. Elbadawi, I. A. (1990). The sudan demand for international reserve: a case of a labour-exporting country. Economica, 73-89.
4. Ben-Bassat, A., & Gottlieb, D. (1991). On the effect of opportunity on international reserve holdings. The Review of Economics and Statistics, March, 6, 329-332.
5. Frenkel, J. A. (1974). The demand for international reserves by developed and less-developed countries. Economica, 41(161), 14-24.
6. Liang, Y., (2022). Empirical analysis of the determinants of China's foreign exchange reserves based on VAR-VEC model [J]. Times Finance, 4, 22-24. DOI:10.3969/j.issn.1672-8661(s).
7. Sula, O., & Oguzoglu, U. (2021). International reserves and economic growth. International Review of Economics & Finance, 72, 16-28.
8. Alberola, E., Erce, A., & Serena, J. M. (2016). International reserves and gross capital flows dynamics. Journal of International Money and Finance, 60, 151-171.
9. Qian, X., & Steiner, A. (2017). International reserves and the maturity of external debt. Journal of International Money and Finance, 73, 399-418.
10. Schröder, M. (2017). Mercantilism and China's hunger for international reserves. China Economic Review, 42, 15-33.
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).
- Volume Title
- Proceedings of the 2023 International Conference on Management Research and Economic Development
- ISBN (Print)
- 978-1-915371-91-1
- ISBN (Online)
- 978-1-915371-92-8
- Published Date
- 13 September 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/24/20230420
- Copyright
- 13 September 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited