The Dynamics of Asian Financial Integration: Facts and Analytics

Publication | February 2011

The book attempts to achieve two goals by assessing the degree of regional and global financial integration and unveiling the drivers of such integration.

First, it lays out analytical frameworks that are foundations for measuring the degree of integration in the financial asset market and direct investment flows, business cycle synchronization and financial contagion, and consumption and output risk-sharing. Second, by applying the rigorous frameworks, the book provides an up-to-date assessment of the extent of regional and global financial integration in Asia, documenting the complexity in the different patterns of the integration and quantifying their consequences. Its chapters look into three broad aspects of regional and global financial market integration: (i) measurement of regional and global financial integration, (ii) understanding dynamics of regional financial integration versus global financial integration, and (iii) welfare implications from regional financial market integration amid financial globalization.

The global financial crisis presents a timely opportunity for Asian policy makers to rethink their strategies for financial deregulation and liberalization, and carefully reconsider a next step for further integration among regional financial markets and beyond. An ultimate question is whether and to what extent financial integration is beneficial for economic growth. By assessing the progress of regional financial integration in East Asia in relation to the trend of financial globalization, this book will help address some of these challenges facing the region's policy makers.

Contents 

  • Executive Summary and Overview
  • Regional and Global Financial Integration: an analytical framework
  • International Capital Mobility of East Asian Economies: Is Domestic Investment Financed by Regional or Global Saving?
  • The Evolution of Regional and Global Risk-Sharing in East Asian Economies
  • Regional and Global Drivers of the Portfolio Holdings of Asian Investors
  • Regional and Global Short-Term Financial Market Integration in Asia: Evidence from the Interbank Markets Under the Crises
  • Stock Market Integration and Financial Contagion
  • Stock Market Integration: emerging East Asia's experience
  • Global and Regional Financial Accelerator Integration
  • Financial Contagion and Vulnerability of Asian Financial Markets
  • Not All Financial Integration is Created Equal: The Composition Matters
  • What Happened to the East Asian Business Cycle?

Additional Details

Editors
Type
Subjects
  • Finance sector development
  • Regional cooperation and integration
Pages
  • 340
Dimensions
  • 6 x 9
ISBN
  • 978-0-415-59551-3 (print)
  • 978-0-203-83405-3 (electronic)

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