Research On Foundation Of Regional Financial Cooperation In Northeast Asia

Since the 1990s,with the rising tide of globalization,with the rising tide of globalization,the world's regional economic integration process is accelerating,and is also becoming an important force for promoting each country's economic development. In the 21st century,the world's focus of economic development is turning to Asia. Asia's main part of economic development is in East Asia,and Northeast Asia is the hot spot of East Asia's economic development.The official start of European Monetary Union provided successful experiences for the financial regionalization's practice,so that Asian countries have seen role of regional financial cooperation for promoting economic development.However, compared with the European Union and North America,the steps of North-East Asia's regional cooperation are so slow,and can not keep up with the internal need of economic development.As Asia's most dynamic and potential area,Northeast Asia region should go with the tide,and actively explore new ways of financial cooperation to promote economic integration process.The profound lessons of East Asia's financial crisis also made Asian countries, aware of the need and urgency of regional financial cooperation.Financial cooperation of countries in the region has become an important force to prevent and defuse financial crisis.Northeast Asia occupies a pivotal position in the economy of the whole Asia and even the whole world.The region's financial cooperation can play an important role on the prevention of financial crisis and the defusing of financial risks.This paper analyzed the motivation and the feasibility of financial cooperation in Northeast Asia on the basis of the theory of Economic Globalization and the theory of Optimum Currency Areas.The paper also elaborated the process of financial cooperation in the Northeast Asia and pointed out theory of economic globalization and the Theory of Optimum Currency Areas,based on an analysis of in and the feasibility of motivation,on the financial cooperation process,pointed out the problems and obstacles exist in the financial cooperation of the Northeast Asia.In the end,the paper puts forward some proposals on how to promote financial cooperation in Northeast Asia.The paper firstly analyzed the motivation of financial cooperation in Northeast Asia in the context of economic globalization and financial regionalization.Financial cooperation in Northeast Asia is a result of the motivations:First,regional financial cooperation can provide funds for regional development;second,jointly prevent and resolve the regional financial crisis;Third,trade and investment expansion has increased the demand for capital,but also increased the intrinsic linkage relations among the countries,so countries need to strengthen financial cooperation;Fourth,to avoid policy conflicts at home and abroad the region,and achieve broader political and economic benefits.Then the paper analyzed the basis and obstacles in the financial cooperation in Northeast Asia.Financial cooperation in Northeast Asia based on:first,countries in North-East Asia have a wide range of complementary in the natural resources,capital, technology,labor and other production factors,and the complementary laid a material foundation for the Northeast Asia;second,a common market economy system is the basis of financial cooperation;third,the Northeast Asia has a higher degree of economic openness to the outside world,so countries in the area need to cooperate to stabilize the exchange rate;fourth,in these countries,wage and price elasticity area higher,this can help market mechanisms make self-adjustment and achieve internal and external balance;fifth,macro-economic policy objectives are similar in countries of Northeast Asia.There are also many unstable factors in financial cooperation in Northeast Asia. These factors hinder the further development of the economic and financial cooperation.First,as a result of different social systems,coupled with long-standing political and military conflicts and the historical legacy of the security,territorial disputes and other issues outstanding,with the result of complex conflicts,the political basis for financial cooperation is to weak;second,the institutional mechanism for cooperation has not yet been formed,and the cooperation still remains at a relatively shallow level of functional cooperation stage;third,in the economic respect,different economic systems,large gap between the level of economic development and low degree of financial market integration in Northeast Asia,are also important factors which restrict the financial cooperation in Northeast Asia.Finally,on the basis of the above analysis,the paper put forward some proposals to promote financial cooperation in Northeast Asia.First,China,Japan and South Korea can carry out financial cooperation first,because their basic conditions for financial cooperation is better than Russia,North Korea and Mongolia;second, strengthen information exchange,and establish a dialogue mechanism between the governments;the third,from the micro-level,to promote business cooperation between banks of each country in North-East Asia;Fourth,to establish Northeast Asia Stock Market,and improve the capital market in Northeast Asia.Fifth,stabilize the region's exchange rates between currencies,to protect the financial security of Northeast Asia.At present,countries of Northeast Asia do not have the basic conditions for economic convergence;therefore,we can not stress too much emphasis on "optimal currency area".The financial cooperation can be promoted step-by-step.The function of financial functions can be chose as the starting point to carry out the financial cooperation in Northeast Asia,and then gradually achieve the highest goal of regional monetary union when the time is ripe.Therefore,cooperation in Northeast Asia can break the normal procedure of international regional cooperation,that is not required in accordance with,such as free trade zone,customs union,common market,political and economic alliance,monetary union,such as from low to high order in general.And we should therefore explore a new way which is different from "optimal currency area", so that we can get the best effect of regional cooperation and promote the development of financial cooperation in Northeast Asia.In addition,China,Japan,South Korea implemented the market economic system earlier,so their system is more perfect,and the degree of openness of financial markets is also relatively high.Russia,North Korea,Mongolia carried out economic reforms later,the institutional foundation and the openness of the system limit the degree of their participation in the cooperation.Therefore,we suggest that China,Japan and South Korea carry out a more broad range of financial cooperation,financial cooperation to form the core in Northeast Asia and at the same time carried our some conditional with Russia,North Korea,Mongolia.Regional cooperation is a systems engineering.All countries need to set aside their differences and enhance mutual trust and consensus,and jointly plan and promote on the basis of clear objectives.Financial cooperation in Northeast Asia will greatly promote the prosperity and stability of Northeast Asia.It will enable countries to share the benefits of stable development and the ultimate goal will be achieved.