One Belt and One Road and regional disparity of RMB settlement of cross-border trade: a study based on provincial panel data in China
【Abstract】Both the planned areas of the “One Belt and One Road” initiative or the distribution of RMB settlement volumes of cross-border trade show obvious regional differences. Based on the regional difference, extending the method to calculate the performance index and using the Dagum (1997) method, this paper computes the performance index of all provinces and regional differences of RMB settlement of cross-border trade in China, and examines the main influencing factors. The results show that the performance index of the eastern area is apparently higher than that of the central and western regions, and that of the western region is the worst; the overall gap of all the three regions is shrinking but the contribution rate of regional difference is always the highest; the main influencing factors are differentiated obviously from region to region. The planned area of “One Belt and One Road” centers on the eastern and western regions, and this would challenge the central region. Therefore, different regions should enhance cooperation to raise economic development level and RMB settlement of cross-border trade performance level and accelerate the process of RMB internationalization.
【Keywords】 One Belt and One Road construction; RMB settlement of cross-border trade; performance index; Gini coefficient;
【Funds】 The Youth Project for National Social Science Fund “The Study on the impact of China’s Strategy on Foreign Trade and Economy (13CJY002);
. 1 According the dividing standards made by the China's National Bureau of Statistics, the eastern China includes Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, Hainan, 11 provinces in total; the central region covers Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei and Hunan, 8 provinces in total; and the western region covers Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia and Xinjiang, 12 in total. [^Back]
. 2 The FDI performance index was put forward by United Nations Conference on Trade and Development (UNCTAD) in 2002. The definition of FDI performance index is: the ratio of a country’s FDI share in global FDI flows to its GDP share in global GDP. If the index is more than 1, it means the country’s good performance in attracting FDI; if the index is 1, indicating normal performance; and if the index is less than 1, meaning bad performance. [^Back]
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