IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v31y2024i19p2059-2066.html
   My bibliography  Save this article

National power and currency internationalization amid increased geopolitical risk: nonlinear insights from PSTR model

Author

Listed:
  • Gaofeng Yin
  • Tao Guan
  • Hanning Song

Abstract

Geopolitical risk events have historically influenced a country’s monetary dominance. Higher geopolitical risk strengthens the correlation between national power and currency internationalization, leading to nonlinear impacts. Using a panel smooth transition regression (PSTR) model, we identify and measure the nonlinearities that affect currency internationalization. Our study highlights the key factors involved and indicates that geopolitical risk can significantly amplify the impact of a country’s share of global GDP and exchange rate log-returns on currency internationalization.

Suggested Citation

  • Gaofeng Yin & Tao Guan & Hanning Song, 2024. "National power and currency internationalization amid increased geopolitical risk: nonlinear insights from PSTR model," Applied Economics Letters, Taylor & Francis Journals, vol. 31(19), pages 2059-2066, November.
    • Handle: RePEc:taf:apeclt:v:31:y:2024:i:19:p:2059-2066
    DOI: 10.1080/13504851.2023.2210807
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2023.2210807
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2023.2210807?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:31:y:2024:i:19:p:2059-2066. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.