Financial Integration in Asia: Estimating the Risk-Sharing Gains for Australia and Other Nations
December 1, 2006
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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.
Subject: Capital account, Consumption, Financial integration, Foreign assets, Stocks
Keywords: gain, investor, welfare gain, WP
Pages:
20
Volume:
2006
DOI:
Issue:
267
Series:
Working Paper No. 2006/267
Stock No:
WPIEA2006267
ISBN:
9781451865271
ISSN:
1018-5941
