China And The Asean Regional Financial Cooperation Research

Regional financial cooperation has been developing both theoretically and practically for a long time. On the theoretical side, Hamada proved the necessity of intra-national policy cooperation which based on game theory;Robert Mundell firstly mentioned the Optimum Currency Area (OCA) theory, and with the effort of many economists, it gradually becomes an important system for the direction of regional financial cooperation in the world. On the practical side, the successful experience of European financial cooperation set a model for others, and the dollarization trend in Latin America is also a sound attempt in regional currency cooperation. Therefore, the regional financial cooperation between China and ASEAN has a good theoretical base and also get some ideas from current practice.This thesis starts from the background of China-ASEAN regional financial cooperation;at first it introduces the developing process of China-ASEAN Free Trade Area (CAFTA), then analyses the effect of Southeast Asia financial crisis in the region and the present conditions of financial system in each countries;afterwards it expounds the popular regional financial cooperation theories ,including the Hamada model and OCA theory;with the comparative analysis of experience in Europe and Latin America, we get some useful inspirations. Based on the background and theory mentioned above, this thesis talked about the current conditions of China-ASEAN regional financial cooperation and conducts empirical analysis. The empirical analysis focuses on the feasibilities of "single currency area" between China and ASEAN through using OCA individual index systems.The conclusion shows that China-ASEAN is not well-prepared for "single currency area", according to the OCA individual index systems. However, China and ASEAN emerging market countries has the possibility to conduct exchange rate or currency cooperation in the long run;and GMS (Great Mekong Sub-region) countries have the trend like dollarization in Latin America. Therefore, we think that China-ASEAN should carryout the dual-regional financial cooperation gradually, that means we have two different approaches: for emerging market countries, we should have the long-term objective for single currency area and for GMS countries we could choose main regional currency for currency cooperation. In the end, this thesis put forward each objective for each stage under this cooperation route and the policies China should use for the regional financial cooperation.