Determinants of international currency competition in the international debt securities market: An empirical analysis based on dynamic panel data model

摘要

In order to provide reference for the internationalization of RMB, using the instrumental variable method, this study investigates the determinants of international currency competition in the international debt securities market. Empirical results show that: the international currency competition is mainly based on the comprehensive strength, currency yield and the network externality. Meanwhile, the historical inertia is significant. China should enhance the comprehensive strength, increase the openness of the domestic debt securities market, promote internationalization of RMB and regional monetary cooperation as soon as possible, which will overcome the disadvantages of “latecomer” and increase the network externality.