Accounting for ASEAN’s International Reserve Hoarding-What has driven it-.pdf

1、The purpose of this paper is to empirically examine the determinants which influence on Southeast Asia's international reserve holdings.It is necessary to understand the factors that impact on the countries' demand for i

2、nternational reserves because the central banks and the governments can manage their international reserves to conform to their economic policies which it will be the countries' maximize economic benefits.
　　The metho

3、dology using in the study is xtgls fits panel-data linear models which is run by STATA programme.The samples of data are a panel data in constant 2010 USD dollars, which consists of eight Southeast Asia countries that ar

4、e Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, the Philippines, Singapore,Thailand, and Vietnam covering from 1995 to 2013.In addition, the data includes BRICS countries at the same period for compari

5、son.The main data sources are the IMF and the World Bank.The key variables is mercantilist determinants which capture defendable export competitiveness.
　　The empirical results find that the main motive of internation

6、al reserve hoarding in ASEAN is mercantilist motive; however, it is not an important determinant in all situations.Firstly, mercantilist is highly negative relation to ASEAN's reserve holding during the global imbalance

7、including ASEAN countries who have been accumulating international reserves more than USD 100 million, for instance, Malaysia, Singapore,and Thailand.Secondly, mercantilist and precautionary variables are equally importa

8、nt when ASEAN's are hoarding reserves during Asian financial crisis.In addition, this result is happened for ASEAN countries which its reserves are less than USD 50 million such as Cambodia, Lao PDR, and Vietnam.On the o

9、ther hand, mercantilist determinants are not significant related to ASEAN's reserve holdings between 2000 and 2006.Furthermore, the insignificant mercantilist variable is happened for ASEAN countries which its reserves a

10、re between USD 50 million and USD 100 million, for example, Indonesia and the Philippines.During the year 1995 to 2013, both of mercantilist and precautionary variables have equally influenced ASEAN's international reser

11、ves, but the international reserve demand for BRICS has nearly depended on precautionary variables.At the same time, mercantilist motive is significant for China and Russia.Overall, mercantilist variables are generally n

12、egative relation to international reserve holding at the one significant level.
　　ASEAN's international reserves are playing an import role in the world reserves even though they are not the world's largest internatio

13、nal reserves.The empirical results in this paper indicate that ASEAN countries have been using international reserves for export-led growth strategy.It implies that objective of international reserves hoarding is not onl