Financial Integration and Rebalancing in Asia

ByOlaf Unteroberdoerster, Runchana Pongsaparn

October 1, 2011

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 shows that Asia's degree of financial integration, both with the world and within the region remains low by various measures. The paper also provides empirical evidence that greater financial integration can support economic rebalancing in statistically meaningful ways. The implication is that in the debate on managing capital inflows the longer-term benefits of financial openness for broader-based growth should not be forgotten.

Subject: Balance of payments, Exchange rates, Financial integration, Financial markets, Financial sector development, Foreign direct investment, Foreign exchange, Portfolio investment

Keywords: Asia, Asia and Pacific, Eastern Europe, Exchange rates, FDI flow, FDI inflow, FDI outflow, Financial Development, Financial Integration, Financial sector development, Foreign direct investment, GDP, Global, Portfolio investment, Rebalancing, savings-investment norm, WP

Pages:
31
Volume:
2011
DOI:
https://doi.org/10.5089/9781463922641.001
Issue:
243
Series:
Working Paper No. 2011/243
Stock No:
WPIEA2011243
ISBN:
9781463922641
ISSN:
1018-5941

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