Chapter

Asian Financial Integration: Trends and Interruptions

Eduardo Borensztein and Prakash Loungani

in Costs and Benefits of Economic Integration in Asia

Published in print February 2011 | ISBN: 9780199753987
Published online September 2011 | e-ISBN: 9780199896783 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199753987.003.0003
Asian Financial Integration: Trends and Interruptions

Show Summary Details

Preview

This chapter 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 chapter also discusses whether potential benefits of regional financial integration, such as increased risk-sharing and stability of the investor base, have materialized.

Keywords: financial integration; convergence; equity premia; interest rates; home bias; risk sharing; dispersion in consumption; dispersion in GDP growth; local investor behavior; foreign investor behavior

Chapter.  12381 words.  Illustrated.

Subjects: Business and Management

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.