BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland
The internationalization of the RMB, capital market openness, and financial reforms in China
Abstract: This paper provides an overview of Chinese financial and
trade integration in recent decades, and the challenges facing China in the
coming years. China had been a prime example of export-led growth,
benefiting from learning by doing, and by adopting foreign know-how,
supported by a complex industrial policy. While the resultant growth has
been spectacular, it comes with hidden but growing costs and distortions.
The Chinese export-led growth path has been challenged by its own success,
and the Global Financial Crisis forced China toward rebalancing, which is a
work in progress. Reflecting on the internationalization of the CNY, one
expects the rapid accelerating of the commercial internationalization of
the CNY. In contrast, there are no clear-cut reasons to rush with the full
CNY financial internationalization: The gains from CNY financial
internationalization are overrated.
Keywords: export led growth; CNY internationalization; mercantilism; financial integration; FDI; (follow links to similar papers)
JEL-Codes: E60; F36; F40; F60; O24; O40; (follow links to similar papers)
27 pages, February 12, 2015
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Päivi Määttä ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom