Can RMB Internationalization Promote Global Value Chain Cooperation?

In the 21 st century,with the evolution of international production form from inter-industry and intra-industry division of labor to intra-product division of labor,global value chain cooperation has deepened increasingly,involving multiple cross-border pricing and settlement of intermediate products and production factors.As a public product for pricing,settlement and storage in the global value chain cooperation,the selection of international currency will have a direct impact on the profits of enterprises and the value-added trade of products.However,in recent years,the United States,relying on its first-mover advantages of "currency hegemony" and both ends of the "smile curve",has constantly interfered with the independence of sovereign currencies of emerging economies such as the renminbi,and disrupted global value chain cooperation,in order to achieve the goal of curbing the rapid development of emerging economies(especially China).Under the new situation,how to deal with the hegemony of the United States dollar and strengthen global value chain cooperation has become an important issue in the academic and practical circles.RMB internationalization provides a new solution for strengthening global value chain cooperation: RMB internationalization will play a currency substitution effect,providing a better "public product" for China and partner countries through the pricing,settlement and reserve functions of RMB,and then directly promoting the value chain cooperation between China and partner countries;producing monetary political effect,resource allocation effect and infrastructure effect to narrow the gap of political stability,improve the efficiency of resource allocation,improve the construction of digital infrastructure,and indirectly promote global value chain cooperation.Based on this,this paper takes the global value chain cooperation between China and other trade and investment cooperation countries(hereinafter referred to as "partner countries")as the research object,and examines how the internationalization of RMB affects the global value chain cooperation between China and partner countries from bothThis paper selects the transnational panel data of sixty-five countries(or regions)from 2004 to 2018,constructing the benchmark model and the intermediary effect model to empirically examines the impact of RMB internationalization on global value chain cooperation between China and partner countries.The research results show that:(1)RMB internationalization will enhance the degree of global value chain cooperation between China and partner countries,and the conclusion is still valid even if the robustness tests such as replacing the measurement methods and data sources of key variables and considering endogenous issues are adopted;(2)The internationalization of RMB can enhance the degree of global value chain cooperation between China and partner countries by reducing the differences in political stability,improving the efficiency of resource allocation,and improving infrastructure construction;(3)From the perspective of the heterogeneity of trade types,the role of RMB internationalization in promoting goods trade value chain cooperation is stronger than that in services trade;(4)From the perspective of individual heterogeneity,RMB internationalization plays a stronger role in promoting the degree of global value chain cooperation between China and developed countries,FTA countries,and non the Belt and Road countries;(5)From the perspective of the heterogeneity of the degree of initial global value chain cooperation,as the degree of initial global value chain cooperation between countries rank from the low end of distribution to the high end,the role of RMB internationalization in improving the degree of global value chain cooperation shows an upward trend;(6)From the perspective of geographical distance and cultural difference heterogeneity,the increase of geographical distance will weaken the promotion effect of RMB internationalization on global value chain cooperation,and the increase of cultural differences between countries will weaken the promotion effect of RMB internationalization on global value chain cooperation theoretical derivation and empirical test,clarifies the internal logic and impact mechanism of RMB internationalization.Based on the above research conclusions,this paper puts forward the following suggestions:(1)Seek common ground while reserving differences,and narrow the quality gap between bilateral systems;(2)Establish the RMB "circulation" mechanism to guide the rational allocation of resources;(3)Strengthen the construction of digital infrastructure in partner countries and remove the underlying obstacles;(4)The promotion of RMB internationalization should not only be "universal",but also be "targeted";(5)Change tariff thinking and move towards mutual benefit and win-win results;(6)Promote the valuation of bulk commodities in RMB and cultivate the real demand for RMB.