Study On The Cost Of Monetary And Financial Cooperation Under The Background Of One Belt And One Road Initiative

Since China first proposed building the "21st century Maritime Silk Road" in 2013,most countries along the route have responded positively to this "One Belt and One Road" initiative,the forms and contents of monetary and financial cooperation among countries along the route are also constantly innovating.Because the area involved in the Belt and Road is too large,there are also great differences in the cultural foundations,economic thought and political systems of these countries.This dissertation starts from the perspective of cost-benefit,takes the OCA index method as major methodology,calculates the OCA index in 51 economies along the OBOR.After analyzing the dynamic changes of monetary and financial cooperation cost in different regions and phases,we in-depth explore the specific reasons for the change of related cooperation costs on the basis of national cultural distance.The OCA index equation constructed in this dissertation will test the exchange rate volatility between China and 51 countries along OBOR,it identifies that trade relevance and differences in the rate of inflation is the major factor affects the cost of monetary and financial cooperation between China and other relevant countries.The main conclusions of this dissertation are as follows:1.Both Southeast Asian and Central Eastern Europe positively responded to the OBOR initiative and effectively lower their cost of monetary and financial cooperation;2.The variation trend of comprehensive cooperation cost in CIS and Western Asia regions are undesirable;3.Myanmar,Nepal,Serbia,Russia and Turkey has significantly declined their costs of cooperation.The research conclusions obtained in this dissertation can provide clear guidance for monetary and financial cooperation between China and relevant countries along the OBOR.That is,China should pay more attention to Southeast Asian and Central Eastern Europe region.Driven by the lower cost of cooperation,corresponding priority should be given to build an effective sub-regional monetary and financial cooperation in these regions.Based on the further cultural integration between countries in this region,we will gradually promote the further development of the "Belt and Road" regional monetary and financial cooperation in different stages.