| The research of regional financial Cooperation has been developing in both theory and practice for along time. On the theoretical respect, Robert Mundell firstly proposed the Optimum Currency Area theory, and with the mutual effort of many other economists, it gradually becomes an important theoretical guidance for the regional financial cooperation in other parts of the world. On the practical respect, the successful effort of European financial cooperation also set a good example for others, and the dollarization trend in Latin America is a praiseworthy attempt in regional currency cooperation. Therefore, the regional financial cooperation between China and ASEAN not only has a good theoretical base but will also learn precious experience from developed countries.In this paper we first combs the relative knowledge of regional financial cooperation as well as international trade development, then we introduce the background and development of financial cooperation between China and ASEAN. Following we utilize the method of panel data analysis by STATA11.0 to establish the panel data regression model thus find out which financial factors we select significantly influence the trade volume between China and ASEAN and the conclusions are exchange volatility and foreign exchange reserve. After the empirical analysis we further explain the reason why those factors become significant.Based on the results of the empirical analysis, we also refer to the experience from developed countries and discuss the policies that may promote the development of bilateral trade volume between China and ASEAN by use of those financial factors effectively. In this paper we hold that because of the differences exist in China and ASEAN, in the coming future it is impossible to establish an optimum currency area similar to European Union in this region. So we must make practical advise for the regional financial cooperation in accordance with the present economic situation between China and ASEAN. |
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