Internationalizing Like China
实证刻画了中国通过分阶段允许不同类型外国投资者进入国内债券市场来推进国际化的策略，并建立动态声誉模型解释该策略，揭示其旨在建立安全发行人信誉同时降低资本外逃成本。
We empirically characterize how China is internationalizing its bond market by staggering the entry of different types of foreign investors into its domestic market and propose a dynamic reputation model to explain this strategy. Our framework rationalizes China’s strategy as trying to build credibility as a safe issuer while reducing the cost of capital flight. We use our framework to shed light on China’s response to episodes of capital outflows.