| ID | 148692 |
| Title Proper | China's bilateral currency swap lines |
| Language | ENG |
| Author | Cheung, Yin-Wong ; Zhan, Wenjie ; Lin, Zhitao |
| Summary / Abstract (Note) | We study the determinants of China's bilateral local currency swap lines that were established following the recent global finance crisis. It is found that economic factors, political considerations and institutional characteristics, including trade intensity, economic size, strategic partnership, free trade agreements, corruption and stability, affect the decision to sign a swap line agreement. Once a swap line agreement decision is made, the size of the swap line is then mainly affected by trade intensity, economic size and the presence of a free trade agreement. The results are quite robust with respect to the choices of the Heckman two-stage framework or the proportional hazard model. The gravity effect captured by distances between China and its counterparts, if present, is mainly observed during the early part of the sample period under consideration. |
| `In' analytical Note | China and World Economy Vol. 24, No.6; Nov-Dec 2016: p.19–42 |
| Journal Source | China and World Economy 2016-12 24, 6 |
| Key Words | Trade Intensity ; Heckman Two-Stage Method ; Poltical Factors and Institutional Characteristics ; Proportional Hazard Model ; RMB Swap Lines |