The Research For China-South Asia Regional Finance Cooperation

In 2013,China put forward the"One Belt,One Road"initiative,hoping to deepen the cooperation with countries along the" Belt and Road”to achieve mutual benefit and win-win results and improve regional economic growth.South Asia is located in the central region of the"Belt and Road Initiative"and is the intersection of land and sea.Moreover,the South Asian region contains two major economic corridors that rely on the construction of Belt and Road Initiative through international channels:the China-Pakistan Economic Corridor,and the Bangladesh-China-India-Myanmar Economic Corridor.It is an important area of cooperation between Belt and Road Initiative and China.In recent years,China and South Asia continue to expand regional trade,China and South Asia closer regional economic and trade ties,with the deepening of economic and trade cooperation,the demand for financial services is greater and higher;In addition,there is a large shortage of capital for infrastructure construction in South Asian countries,which is in urgent need of support from China.Therefore,it is necessary to deepen the regional financial cooperation between China and South Asia and to provide financial services for economic and trade cooperation and infrastructure construction.In addition,under the influence of economic globalization,countries have strengthened financial cooperation.The South Asian region has important geographical advantages,and the development of China-South Asia regional financial cooperation is conducive to maintaining the appeal and attraction of this initiative.On the basis of previous studies,this paper firstly evaluates the process of China-South Asia regional financial cooperation by combining static analysis and dynamic analysis,that is,analyzing and revealing the characteristic facts of China-South Asia regional financial cooperation.Using the consumption risk sharing model of Asdrubali et al.,this paper measures the degree of financial cooperation between China and South Asia.The results show that the degree of financial cooperation between China and countries in South Asia is quite different,and there are some countries with higher degree of cooperation(Pakistan).There are also countries with lower levels of cooperation(Bangladesh),and the level of financial cooperation between China and South Asia is relatively low,which is not only lower than that in South Asia,but also lower than that in China-ASEAN regional financial cooperation,and the process of regional financial cooperation between China and South Asia is also relatively slow.Secondly,it analyzes in detail the main reasons that affect the low degree of regional financial cooperation between China and South Asia,that is,qualitative analysis reveals the reasons for the low degree of regional financial cooperation,and holds that there are mainly geopolitical contradictions and weak economic and financial foundation.Insufficient people-to-people exchanges,etc.Then,on the basis of consumption risk sharing model,the interaction item is added to test the influencing factors of regional financial cooperation between China and South Asia.The results show that:good political stability,high degree of economic openness,A good level of financial development plays a positive role in promoting regional financial cooperation,among which the development level of the lending market plays the greatest role in promoting regional financial cooperation,but the development level of the capital market plays a small role in promoting regional financial cooperation.Finally,on the basis of comparing and drawing lessons from China-ASEAN regional financial cooperation,some suggestions are put forward to promote China-South Asia regional financial cooperation.