Asian Financial Integration: Trends and Interruptions
IMF Working Papers, January 1, 2011
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- Asian Financial Integration: Trends and Interruptions
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Bibliographic details
- Authors: Eduardo Borensztein, Prakash Loungani
- Published: January 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455211821.001
Main findings on integration trends
- 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 increased.
- Asian countries remain considerably more financially integrated with major countries outside the region than with those within the region.
- The paper examines whether potential benefits of regional financial integration, such as increased risk-sharing and stability of the investor base, have materialized.
Analytical focus and methods
- Comparative analysis of financial integration within Asia, industrialized countries, and other regional groups.
- Examination of cross-country dispersion in equity returns and interest rates as indicators of integration.
- Assessment of cross-border equity and bond holdings.
- Discussion of potential benefits of regional financial integration, including risk-sharing and investor-base stability.
Key subject areas and keywords
- Subjects: 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
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- Asian Financial Integration: Trends and Interruptions