China - Asean Free Trade Area Regional Financial Cooperation

According to the Theory of Optimal Currency Area, A normative and empiricalanalysis on the regional financial cooperation of the China-ASEAN Free Trade Areahas been done. From four aspects such as regional monetary cooperation, theconstruction of the regional financial market, cooperation between financialinstitutions and regional economic policy coordination, this thesis summarizes theprocess of regional financial cooperation in the China-ASEAN Free Trade Area, andprobe in to both positive and negative aspects of EU financial integration experiencesand lessons. Then whether China-ASEAN Free Trade Area can be built into anoptimal currency area has been analyzed in an empirical way. On this basis, theprospects of the China-ASEAN Free Trade area of regional financial cooperation hasbeen discussed.As for the research on China-ASEAN Free Trade Area of regional financialcooperation, this thesis not only clarifies in detail the regional monetary cooperation,the construction of regional financial markets, cooperation between financialinstitutions and regional economic policy coordination respectively, but also analyzesthe relationship and impact of regional monetary cooperation, the construction ofregional financial markets and regional economic policy coordination. The lessons ofthe EU financial integration has been Emphasized that is the revelation of theEuropean sovereign debt crisis on China-ASEAN Free Trade Area of the regionalfinancial cooperation.The focus in the empirical part of this thesis is on optimal currency area indexsystem and the OCA index. Logarithmically differing GDP deflator from1999to2008, obtains a correlation coefficient of the rate of inflation of China-ASEANcountries, and then this thesis views the nominal exchange rate differences of China-ASEAN countries as explained variables, differences of per capita GDP of China-ASEAN countries, GDP growth rate differences in bilateral economic openness,differences in inflation rates are viewed as explanatory variables. Using data from 1997to2008, a multiple regression has been done to calculate the OCA index from2004to2006with the ASEAN countries coming to China as the anchor country. Thefinal conclusion is: in addition to Indonesia, China-ASEAN Free Trade Area can bean optimal currency area conditions under the optimal currency area index system.