A Study On The Relationship Between Regional Financial Cooperation And Economic Growth In China - ASEAN Region

1997 Asian financial crisis and 2008 Subprime crisis originated in the US created a huge impact to China and ASEAN countries,Economic development in the region was severely disrupted. After experiencing the financial turmoil,China and the ASEAN countries were well aware that they need to strengthen regional economic and financial cooperation. China—ASEAN Free Trade Area officially launched in 2010,China and ASEAN regional economic cooperation and development become faster and stronger,regional economic growth increased significantly,economic ties between the countries increasingly close,regional economic integration speeds up the process. This has brought profound influence to the regional financial market and financial environment,and new opportunities for regional financial cooperation. In addition it put forward higher requirements to financial services.At present,China — ASEAN comprehensive, multi-level and wide-ranging economic cooperation is deepening,regional financial cooperation has made some progress. However, compared with developed countries,there are large differences in the level of development of the region’s countries,political and cultural background are relatively complex. Therefore, China—ASEAN regional financial cooperation within the region according to the actual situation, gradually develop from low level to high level. Based on this,in this paper,I choose to study the relationship between China—ASEAN Regional Financial Cooperation and Economic Growth. With a view that I could propose practical measures to bilateral financial cooperation,thereby contributing to sustained and rapid development of bilateral economics.China—ASEAN regional cooperation in the field of finance,both sides have a great future cooperation. In this paper,I detailed analysis the China — ASEAN Regional Financial Cooperation and the situation of economic growth firstly. Then I point out many problems existed in bilateral financial cooperation in regional. Then use of panel data model,selecting the China—ASEAN related financial indicators of regional financial cooperation and economic growth indicators,to empirical analysis on the relationship between the two. Find the significant financial indicators to bilateral economic growth. According to empirical results,I put forward practical suggestions for that how to improve the level of regional financial cooperation,policies related to development of regional financial coordination,institutional market cooperation and exchange rate coordination,etc.