Economic and Trade Cooperation and Currency Internationalization: Theoretical and Empirical Analysis

This chapter discusses the relationship between economic and trade cooperation and currency internationalization in a general sense from both theoretical and empirical perspectives. First, by reviewing the main literature on currency internationalization, the chapter summarizes the relationship between economic and trade cooperation and currency internationalization into two different theoretical mechanisms: (1) economic and trade cooperation facilitates economic integration and thus acts on currency internationalization, and (2) economic and trade cooperation promotes high-quality development of the economy and finance and thus acts on currency internationalization.