China's Growth, Stability, and Use of International Reserves

Joshua Aizenman, Yothin Jinjarak, Nancy P. Marion

Research output: Contribution to journalArticlepeer-review

4 Scopus citations


Since the onset of the global financial crisis, China and the U.S. have reduced their current-account imbalances as a share of GDP to less than half their pre-crisis levels. For China, the reduction in its current-account surplus post-crisis suggests a structural change. Panel regressions for a sample of almost 100 countries over 1983-2013 confirm that the relationship between current-account balances and economic variables changed in important ways after the financial crisis. China's rebalancing has been accompanied by a decline in its reserves-to-GDP ratio and greater outward FDI that, in turn, has mitigated reserve hoarding.

Original languageEnglish
Pages (from-to)407-428
Number of pages22
JournalOpen Economies Review
Issue number3
StatePublished - 1 Jan 2014
Externally publishedYes


  • China's Growth
  • Current account
  • International Reserves
  • Re-balancing
  • Stability

ASJC Scopus subject areas

  • Economics and Econometrics


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