Study On The Financial Development In The Process Of China-ASEAN Trade Openness

Since formal dialogue between China and ASEAN countries has started,the bilateral trade has been expanding rapidly,the bilateral economic and trade cooperation has been increasingly close.The trade partner status with each other has been continuous improve.However,the low level of financial development among China-ASEAN countries,and even worse polarization of financial development among these countries still existed.Therefore the progress to promote regional financial cooperation has been slow.Then,this paper aims to discuss financial development whether be affected in the process of China-ASEAN trade openness,and the influence of trade openness on financial development among these countries。First of all,this paper combs the theory about the influence of trade openness on financial development.Second,we analyze the status quo of trade openness and financial development of China-ASEAN countries.In this part,after analyzing the trade openness degree and trade freedom of China-ASEAN countries,we study the bilateral trade between China and ASEAN countries.Then,we make a concrete analysis of monetary depth,capital deploy ratio,the scale and efficiency of bank sectors,the scale and efficiency of securities market,in turn,we use the main component analysis method to measure the level of several member states of China-ASEAN countries.The result shows that the ranking of the financial development among these countries,and that the financial development level of China-ASEAN countries shows a tendency of polarization,and there has been no convergence.Third, the results of Johansen cointegration test and panel regression model shows that the scale of financial development,and the efficiency of financial development have long-term cointegration relationship with trade openness. Moreover,there exists promotion of the scale and efficiency of financial development by trade openness,but the expansionary effect has no significant.Then,by joining the trade openness and per capita GDP cross term,we study trade openness influence on financial development under varieties of comparative advantage of financial development.But the cross index coefficient turns to be not significant. We use varying coefficient model to make the empirical research to prove trade openness influence on the scale and efficiency of financial development among each country of China-ASEAN. The study finds that trade openness plays a greater role in promoting the scale of financial development than the efficiency of financial development. Specifically speaking, comparing with other countries, China-ASEAN trade openness plays the greater role in promoting financial development of China, Laos and Vietnam.Finally,On the basis of empirical research,we give some suggestions to improve the influence of trade openness on financial development.