Regional: Global and Regional Financial Market Integration

Sovereign Project | 42490-012

Summary

A book will be published, composed of chapters drawn from a collection of rigorous background papers suitable for journal publication. The book will comprise three major sections. The first section will empirically measure the degree of regional versus global financial integration and document the progress of regional financial integration in emerging East Asia amid the rapidly globalizing financial landscape. The second section will compile studies on the dynamics and interaction between regional financial integration and financial globalization, and analyze the driving factors behind these two distinct forces of financial integration. The third section will provide the policy implications of findings from the first two sections, including the benefits, if any, of taking a regional approach to financial market integration over a global approach.

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Project Name Global and Regional Financial Market Integration
Project Number 42490-012
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7247-REG: Global and Regional Financial Market Integration
Technical Assistance Special Fund US$ 750,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector

Public sector management - Economic affairs management

Gender Equity and Mainstreaming
Description A book will be published, composed of chapters drawn from a collection of rigorous background papers suitable for journal publication. The book will comprise three major sections. The first section will empirically measure the degree of regional versus global financial integration and document the progress of regional financial integration in emerging East Asia amid the rapidly globalizing financial landscape. The second section will compile studies on the dynamics and interaction between regional financial integration and financial globalization, and analyze the driving factors behind these two distinct forces of financial integration. The third section will provide the policy implications of findings from the first two sections, including the benefits, if any, of taking a regional approach to financial market integration over a global approach.
Project Rationale and Linkage to Country/Regional Strategy Regional integration in Asia Pacific is gaining momentum. The Asian Development Bank (ADB) adopted the Regional Cooperation and Integration (RCI) strategy on 25 July 2006 to support various regional initiatives for closer economic and financial ties across the region. In relation to regional economic and financial integration, three major studies have been undertaken in recent years including the: (a) Monetary and Financial Integration in East Asia in 2004 implemented under RETA 6000: Study on Monetary and Financial Cooperation in East Asia (b) Asian Economic Cooperation and Integration: Progress, Prospects and Challenges in 2005 under RETA 6172: High Level Conference on Asia s Economic Cooperation and Integration and (c) Emerging Asian Regionalism: A Partnership of Shared Prosperity in 2008 under RETA 6374: Emerging Asian Regionalism: Ten Years After the Crisis. All of the above studies helped identify key areas for closer cooperation, namely, information exchange and surveillance, resource management, exchange rate and monetary policy, and financial sector reform and development assessed progress since the 1997 98 financial crisis and provided policy guidance in some cases with more detailed road maps for further actions. And most recently, another RETA on Quantifying the Costs and Benefits of Regional Economic Integration is proposed to estimate the costs and benefits of regional economic integration to help the region s policymakers make more informed decisions in regional integration efforts. This study will attempt to answer questions such as: (a) what is the implication of financial globalization for regional financial market integration (b) is there a need for balancing the regional efforts for financial market integration with the trend of financial globalization and (c) if there is, how can policymakers harmonize their efforts for regional financial market integration with financial globalization Taking stock of the previous studies in regional economic and financial integration, this study will start by empirically measuring the degree of regional vs. global financial integration. Then it will assess if there is additional benefit of taking a regional approach to financial market integration over a global approach. Assessing the benefits of regional financial integration versus financial globalization should help identify the reasons why regional financial integration has been lagging in Asia.
Impact Well-informed and balanced view of regional versus global financial integration that will ultimately lead to greater financial resilience and stable growth in the emerging East Asia region
Project Outcome
Description of Outcome Enhanced understanding of the process of regional financial integration vis-a-vis financial globalization, while providing policy lessons to a wide range of ADB's developing member countries
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Two or three midterm seminars and one finalization workshop to present revised papers and findings for comments

Background papers covering empirical estimates of the degree of regional versus global financial integration, dynamics and interactions between regional financial integration and financial globalization, and assessment of benefits of taking a regional versus global approach to financial integration.

A book comprising chapters drawn from the results and policy recommendations of the background papers

A book launch to disseminate the papers' findings

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location ADB Headquarters
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services International consultants (individual consultants): 3 Macro Financial Economist and Lead Coordinator Researcher for Chapter on Regional versus Global Financial Integration (3.5 person months (PMs) total, intermittent) 3 Macro Financial Economists for Chapter on Dynamics of Regional Financial Integration and Financial Globalization (3.5 PMs total, intermittent) 1 Macro Financial Economist for Policy Paper (2 PMs, intermittent) 1 2 Economics Editor (2.5 PMs total) Domestic Consultants (individual consultants): 1 Project Coordinator (12 PMs) 1 Events Coordinator (2 PMs) 1 copy editor (2.5 PMs) 1 desktop publisher (2 PMs)
Responsible ADB Officer Hoe Yun Jeong
Responsible ADB Department Office of Regional Economic Integration
Responsible ADB Division Office of Regional Economic Integration
Executing Agencies
Asian Development BankHoe Yun Jeonghyjeong@adb.org6 ADB Avenue, Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 23 Oct 2008
Fact Finding 11 Mar 2009 to 25 Mar 2009
MRM -
Approval 09 Mar 2009
Last Review Mission -
PDS Creation Date 04 Dec 2008
Last PDS Update 04 Dec 2008

TA 7247-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Mar 2009 - 09 Mar 2009 30 Sep 2010 28 Feb 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
750,000.00 0.00 0.00 0.00 0.00 0.00 750,000.00 09 Mar 2009 642,450.65
Title Document Type Document Date
Global and Regional Financial Market Integration TA Completion Reports Jul 2014
Global and Regional Financial Market Integration Technical Assistance Reports Mar 2009

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

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