Monetary and Financial Cooperation Between China and the One Belt One Road Countries |
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Authors: | Jin Sun |
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Institution: | School of International Trade and Economics, Central University of Finance and Economics, Beijing, China |
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Abstract: | ABSTRACTBased on the theory of optimal currency area (OCA), we calculate the OCA index between China and the OBOR partners with the expressed objective of identifying which partners exhibit monetary and financial compatibilities, and hence present the best potential in terms of cost and benefits. Our findings suggest that among South East Asia region, Malaysia exhibits the highest compatibility and profit potential, followed by Thailand and Vietnam. For the East European area, Poland and Croatia show the best potential in terms of monetary and financial cooperation; with the Czech Republic as close third. Based on our computation, currently Central Asia and the Middle East do not possess the condition or potential for beneficial financial and monetary collaboration. |
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Keywords: | monetary and financial cooperation OCA index One Belt One Road (OBOR) regional financial integration |
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