Financial Integration in East Asia: An Empirical Investigation

Publication | May 2011

This paper empirically examine the degree of linkage among the equity and bond markets of Hong Kong, China; Japan; the Republic of Korea; and Singapore using a financial gravity model. This paper find that financial linkages among the four economies are higher than predicted by the financial gravity model, driven by trade linkages.


  • Introduction
  • Size of Bilateral Holdings of Financial Assets
  • Theoretical Framework and Empirical Specification
  • Empirical Results
  • Concluding Observations
  • Appendix
  • References