Financial Integration in East Asia: An Empirical Investigation
This paper aims to evaluate the degree of bilateral linkages these East Asian financial markets—Hong Kong, China; Japan, the Republic of Korea; and Singapore.
This paper empirically examines 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 finds that financial linkages among the four economies are higher than predicted by the financial gravity model, driven by trade linkages.
- Size of Bilateral Holdings of Financial Assets
- Theoretical Framework and Empirical Specification
- Empirical Results
- Concluding Observations