IMF Working Papers

Asian Financial Integration: Trends and Interruptions

By Eduardo Borensztein, Prakash Loungani

January 1, 2011

Download PDF

Preview Citation

Format: Chicago

Eduardo Borensztein, and Prakash Loungani. Asian Financial Integration: Trends and Interruptions, (USA: International Monetary Fund, 2011) accessed September 20, 2024
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

The paper compares trends in financial integration within Asia with those in industrialized countries and other regional groups. Declines in cross-country dispersion in equity returns and interest rates suggest increased Asian integration, with the process interrupted by crises and global volatility. Cross-border equity and bond holdings have also increased, but Asian countries remain considerably more financially integrated with major countries outside the region than with those within the region. The paper also discusses whether potential benefits of regional financial integration, such as increased risk-sharing and stability of the investor base, have materialized.

Subject: Financial crises, Financial institutions, Financial integration, Financial markets, Securities, Stock markets, Stocks

Keywords: Asia, Asia and Pacific, Bond markets, Eastern Europe, Equity holdings equation, Equity premium, Europe, Exchange rate, Financial crisis, Financial integration, Global, Gravity model, Herding, Home bias, Investor base, Investor economy, Investors' choice, Issuer economy Group, Risk sharing, Risk-sharing, Securities, Stock markets, Stocks, WP

Publication Details

  • Pages:

    41

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2011/004

  • Stock No:

    WPIEA2011004

  • ISBN:

    9781455211821

  • ISSN:

    1018-5941

You May Also Be Interested In...

Systemic Implications of Financial Inclusion

September 20, 2024

Satellite-Based Census of Residential Buildings: Application for Climate Risk Assessment

September 20, 2024

Zimbabwe: Technical Assistance Report-Financial Sector Stability Report Follow Up Technical Assistance on the Implementation of the Basel III Liquidity Framework

September 20, 2024

Bangladesh: Technical Assistance Report-Report on Residential Property Price Index (RPPI) Mission (May 19–27, 2024)

September 20, 2024