Factor Analysis of Financial Standing of the Shanghai Cooperation Organisation Member States

Abstract

the financial position of the Shanghai Cooperation Organisation nations. Objectives This research represents factor analysis of trends in the financial standing of the Shanghai Cooperation Organisation countries and assesses an increment in a set of interdependencies with subsequent polynomial approximation. Methods We draw upon fundamental principles of the factor analysis theory and practice, laws of economic and finance, findings of scholarly studies into the equilibrium and non-equilibrium development of global economy and world order by country. Results We identify countries demonstrating high and low growth rates of inderdependencies and high and low instability in terms of absolute peak values. Conclusions and Relevance Analyzing the 2006–2016 period, we capture high growth rates in Tajikistan (liquid bank reserves to assets ratio), Kyrgyzstan (extensive money supply, inflation, consumer prices), Kazakhstan (foreign exchange rate), Uzbekistan (deflator), Russia (loan interest rate for the private sector), China (national trading companies), and high absolute peak values of instability in Kazakhstan (liquid bank reserves to assets ratio), Tajikistan (extensive money supply), India (foreign exchange rate), Russia (deflator, national trading companies), China (inflation, consumer prices), Kyrgyzstan (loan interest rates for the private sector). The findings would be useful in outlining and adjusting the international policy and foreign trade with the Shanghai Cooperation Organisation countries and improving the implementation mechanisms.