Empirical Analysis Of Border Trade And Interstate Circulation Of The Rmb Between China And Vietnam

With the improvement of China's economic strength and international status, more and more scholars began to study the issue of RMB internationalization. The RMB of interstate circulation is the basis of the internationalization of RMB. First, RMB should be able to circulate in neighboring countries and then expand its scope .Only in this way can we finally achieve the completion of RMB internationalization. The increase of China's GDP, the expansion of China's export market share and the stability of RMB are all the fine conditions for the interstate circulation of RMB. At present, more than 95% of border trade between China and Vietnam is settled by RMB. Therefore, the interstate circulation of RMB is a problem worthy of study.Vietnam and China have special geographical and economic relationships. Their foreign trade volume is rising significantly. Therefore, this thesis selected Vietnam as the subject to illustrate the relationship between border trade and interstate circulation of the RMB. As to researching methods, quantitative and qualitative analysis is used. Border trade volume,structure,pattern are used to analyze the current situation of border trade between Vietnam and China. Circulating volume and settlement of RMB are used to analyze the current situation of circulation of RMB between Vietnam and China. Through the empirical analysis, we drew the conclusion that border trade and interstate circulation of the RMB have long-term balance and mutually Granger causal relationship. Therefore, the interstate circulation of the RMB can be achieved with the development of border trade. We can promote the development of border trade to improve interstate circulation of RMB. Therefore appropriate policy measures should be adopted to expand the scope of interstate circulation of the RMB.