Monetary Cooperation In East Asian Regional Integration: Model Analysis And Path Selection

Since 1970s, East Asian countries have made great progress in economic increase and developing process, and have become the world's most energetic area. However, the disadvantages of East Asian's economic mode and system appeared, especially under the shock of economic globalization and financial liberalization. As the contradiction between traditional economic systems,monetary systems and lagging exchange rate institutions has intensified, the financial crisis broke out in June of 1997.This crisis has revealed the profits of East Asian monetary cooperation, and the countries have realized the importance of clearing up divergence. Under the perspective of East Asian regional integration, the paper chooses OCA theory as the studying basis, tries to build a synthetically analytical frame, in order to test the feasibility and dynamic evaluation of monetary cooperation, and then gives mode and path suggestion.The paper mainly consists of five chapters: the first chapter is theoretical analysis and document summarization; the second chapter analyzes situations of East Asian regional integration, which includes interaction of the economic integration & monetary cooperation, and the institutional arrangement; the third chapter generalizes the current situations and barriers of East Asian currency cooperation; the fourth chapter uses VAR and Endogeneity test to conclude potential cooperating groups to strengthen the sub-area currency cooperation and positive relations between the economic and currency integration; in the last chapter, based on the above analysis, we get to the conclusion that countries with high cost also can join the regional integration referring to future benefits, and the East Asian monetary cooperation should be a gradually advanced mode depending on systematic procedure.