Financial Integration in Asia: Estimating the Risk-Sharing Gains for Australia and Other Nations

 
Author/Editor: Mercereau, Benoît
 
Publication Date: December 01, 2006
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: Holding foreign assets reduces the volatility of a country's income by allowing countries to share risk. Yet, financial integration is limited in Asia. This paper estimates how much Australia and other countries in the Asia-Pacific region would gain from greater financial integration. The results suggest that these welfare gains are large, which argues in favor of a progressive capital account liberalization across the region.
 
Series: Working Paper No. 06/267
Subject(s): Risk management | Australia | Asia and Pacific | Capital account liberalization | Foreign investment | Financial systems

Author's Keyword(s): Risk-sharing | international diversification | regional integration
 
English
Publication Date: December 01, 2006
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2006267 Pages: 20
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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