Research On The Influencing Factors Of Funds Financing Between China And Countries Along "The Belt And Road"

Ever since the 2008 global financial crisis began,capital transactions and global trade activities active around the world have been greatly impacted,and the global economy has been experiencing a long-term decline.However,with the advent of anti globalization events such as Brexit and the Sino US trade war,and the continuous impact of the COVID-19 on global trade activities,the fragmented development of the world economy has intensified.Nonetheless,the significance of participation in the global value chain in production and trade is unstoppable as a significant driving force to support the country’s wealth and progress in the early stage.The "Belt and Road Initiative" is dedicated to fostering the balanced and inclusive growth of the global economy as a national top-level cooperation endeavor.Finance is an excellent tool for promoting high-quality economic development and a crucial supporting force for a nation’s economic development.Thus,improving country financial environments,financial development levels,and financial cooperation along the way across countries is a trend that will unavoidably emerge in the future of global economic development.A focused form of financial help is financial intermediation.In addition to being a necessary objective for advancing "the Belt and Road" initiative,promoting financial intermediation and the development of countries along the route also requires China to launch an immediate new phase of economic transformation and upgrading as well as a new development pattern.Based on the aforementioned context,this paper’s analysis of the pertinent literature revealed that,despite the "Belt and Road" program garnering the interest of many academics,there aren’t many study findings in the area of funding.In order to analyze the financing of the development process of 64 nations along "the Belt and Road," this paper innovates in the research approach and breadth.This paper examines the factors that affect the development of research financing,combining qualitative and quantitative analysis techniques to sort out the current situation of financing development based on the theoretical analysis of the mechanism.It then makes policy recommendations to support the development of financing.First,after summarizing the research background,this paper examines the evolution of financial development theory,provides a theoretical framework for understanding the concept of financing,and combines the findings of previous studies to analyze the mechanism of institutional quality,economic development level,infrastructure construction level,and bilateral trade level affecting the development of financing,supporting the choice of variables in subsequent research.Second,this paper analyzes the development status of financing from the perspectives of promoting the internationalization of the RMB,enriching financing channels,and strengthening financial supervision.Additionally,this paper quantitatively examines the level of development of financing in 64 countries along the line on the basis of developing an evaluation system.The secondary indicators of financial cooperation and the financial market account for a significant share of the weights of indicators at all levels of finance,as compared to the financial environment and the credit system,according to the results of the entropy approach used to compute them.As a result,improving regional financial cooperation and encouraging the growth of financial markets in the countries bordering the line have emerged as crucial strategies for advancing the development of financing.In addition,by grouping countries along the line by region,and then analyzing the average score of the development of financing in each region from 2014 to 2020,we can find that the overall upward trend means that there is still huge room for countries to promote financing in the future.Finally,with the help of combing the basic theories mentioned above,this paper explores the impact of joining the "the Belt and Road" initiative,institutional quality,per capita GDP,bilateral trade volume and mobile cellular subscriptions per 100 people on the development of financing.The results of the empirical analysis are as follows: within the 1% confidence interval,the participation of the "the Belt and Road" initiative and bilateral trade volume are significantly and positively correlated with the level of financing development;In the5% confidence interval,the number of mobile cellular subscriptions(per 100 people)is significantly positively correlated with the level of financing;The per capita GDP of a nation considerably positively correlates with the degree of financing within the 10%confidence interval.As a result,the direction of action to measure the development potential of financing and promote the development of financing can be determined by the quality of a country’s system,the level of economic development,the level of infrastructure construction,and the level of trade cooperation between the country and China.This essay makes the following recommendations for fostering the development of financing based on the findings of the aforementioned research: Start by planning the development path logically.It is necessary to improve ideological understanding,create a roadmap and schedule for financing development,and gradually promote financing development in a targeted and phased manner because "the Belt and Road" initiative covers a wide range of areas and the development environments of different countries are quite different.Secondly,we should adopt differentiated capital and financial policies for countries along the line.In view of the diverse and complex national conditions of the regions along the line,the differentiated financing policy orientation is particularly important.Only by promoting the financing development of the countries along the line in accordance with the different factors that affect the financing effect,can the regional economy get rapid and high-quality development.Finally,based on the findings of the empirical analysis of this paper,it is recommended that in order to encourage the growth of financial intermediation,the "Belt and Road" region should focus on four areas: regional governance,infrastructure development,trade exchanges,and financial cooperation.This will help to encourage the development of regional infrastructure.