Research On Financial Cooperation Between China And Central Asian Countries In The Context Of The "Silk Road Economic Belt"

As regional economic integration continuously progresses,financial cooperation has become the key drive of integrating resource distribution and promoting regional economy's development.With implementing "Silk Road Economic Belt" strategy,countries promote financial cooperation,enhance measurement of finance security assurance with each other,in order to avoid financial risks and thus ensure that every country's substantial economy steadily develop.Central Asian countries are not only the core regions of "Silk Road Economic Belt" construction,but also the essential places of China's energy supply.Therefore,considering that "Silk Road Economic Belt" would continuously promote China's energy and finance security,China should strengthen the financial win-win cooperation with Central Asian countries.In recent years,with the rapid development of the scale of economic and trade cooperation among China and Central Asian countries,the cooperation has gradually expanded into areas such as energy,transportation,production capacity and finance.China and Central Asian countries have the obvious advantage in geography and cultural foundation,in addition to which economic transactions between China and those countries are strongly complementary,with Shanghai Cooperation Organization offering the crucial platform of cooperation.Besides,"Silk Road Economic Belt" strategy highly fits into Central Asian countries' own development strategies and schemes,thus providing solid foundation of financial cooperation.Financial cooperation,the key element of a country's economy development,functions as the guide of redistributing resources and improving investment efficiency,the indispensable bond of enhancing trade,energy and technology cooperation among China and Central Asian countries,and more as the efficient tool for dealing with the problem of lacking infrastructure construction fund in Central Asian countries.Promoting trade progression and currency circulation,deepening financial cooperation are the key elements of "Silk Road Economic Belt"strategy.Therefore,it is great significance to study the financial cooperation among China and Central Asian countries under the background of "Silk Road Economic Belt,"and promote connection and communication in strategic development.Based on "regional economic integration" theory,"optimal currency area" theory and "finance development" theory,this article studies the financial cooperation among China and Central Asian countries,in the structure of analyzing the reason why China promotes the financial cooperation with Central Asian countries,proposing the possibility of financial cooperation,claiming the problems and solutions of financial cooperation.And this article analyzes internal effect mechanism of financial cooperation among China and Central Asian countries from three aspects,trade convenience,financial discrepancy and financial collaboration,and verifies these three factors' effect on the potential of financial cooperation in China and Central Asian countries,further proposing effective resolutions of the financial cooperation.Based on "regional economic integration" theory,"optimal currency area" theory and "finance development" theory,financial cooperation of relevant regions at home and abroad,research status of financial cooperation among China and Central Asian countries are covered to clarify the connotation and development procedure of regional financial cooperation.Through five aspects of political relationship,geographical condition,economical level,trade structure and cooperation platform,the foundation of financial cooperation among China and Central Asian countries was analyzed in a qualitative manner.With applying OCA exponent model,economic integration level of China and Central Asian countries was examined.The research indicates that since the trade integration and the liquidity of elements have been in a low level,the financial cooperation among China and Central Asian countries does not have the preliminary requirements in "optimal currency area" theory that was put forward by Mundell.It's certainly known that the obstruction to the financial cooperation between China and central Asian countries can be noticed in many angles,like regional multilateral financial cooperation,bilateral cooperation between governments,cooperation between commercial banks,policy banks,field of securities and financial exchanges and cooperation.By constructing the dual financial cooperation potential model,the financial cooperation between China and central Asian countries potential effects can be inspect from such 3 factors as following--the perspective of the convenience of trade,finance differentiation and financial synergy degree,and it's plausible to put forward effective measures of promoting China's financial cooperation with central Asian countries.By defining the connotation of trade convenience,financial difference and collaborative,firstly,using gravity model to analyze the trade convenience between China and central Asian countries,construct the level index system of trade facilitation,the study found that the effect brought by trade facilitation level index on bilateral trade flow is prominent and positive.There are many factors affecting trade facilitation that any change in one of those will affect bilateral trade flows.Secondly,it is factor analysis method that is used to analyze the differences of financial development between China and central Asian countries,and to build the financial development level evaluation system.Study found that the level of financial development is different between China and central Asian countries:China>Kazakhstan>Uzbekistan>Kyrgyzstan>Turkmenistan>Tajikistan,the rank of financial development among the six is similar to that of their economic strength.China has the highest level of financial development,with the most obvious advantages in financial infrastructure development,followed by the level of financial in-depth development,but the level of financial vitality is relatively backward,ranking third.Thirdly,By using the system synergetic degree model to construct the regional financial development coordination index system,the financial cooperation and coordination between China and central Asian countries can be analyzed from the three aspects of the order degree of financial service,financing ability and financial security.The study finds that China and central Asian countries did not have coordinated financial development before 2014,since when,the financial development has shown a coordinated state,but with a low coordination degree which has not changed in recent years.The best performance of financial safety and order is shown,which indicates that China and central Asian countries have become more and more obvious in the order of financial security system.The worst performance of financial service order reflects that the financial services system is still in adjustment and transition period and needs to find a new breakthrough.Therefore,it is necessary to combine new progress in the construction of the Silk Road economic belt,strengthen the border trade management,standardize the optimization of trade settlement procedures,and improve the convenience of trade and investment.It's also important to actively play a leading role in AIIB,optimize the financial cooperation platform,constantly strengthen the financial service system construction,improve the efficiency of cross-border financial services market,and narrowing the differences of financial development level between China and central Asian countries.At the same time,it's essential to improve the Internet financial services platform,deepen cooperation on cross-border trade and financial regulation,and comprehensively improve the financial cooperation and coordination capacity between China and central Asian countries.