Regional and Global Financial Integration in East Asia

Research output: Chapter in Book/Report/Conference proceedingChapter

14 Citations (Scopus)

Abstract

This chapter assesses the progress of regional and global financial integration in East Asia. The chapter is organized as follows. Section 7.2 analyzes the data on geographical distribution of international portfolio assets and bank claims for East Asia compared to that for Europe, in order to judge the degree of regional and global asset diversification of East Asia. A gravity model of bilateral financial asset holdings is adopted to formally test if East Asian financial markets are relatively less integrated within the region than in global markets, particularly compared with ones in Europe. Section 7.3 introduces the empirical framework on consumption risk-sharing, and estimates the degree of regional and global consumption risk-sharing for East Asia and Europe. Section 7.4 discusses several hypotheses for the low degree of regional financial integration in East Asia.

Original languageEnglish
Title of host publicationChina, Asia, and the New World Economy
PublisherOxford University Press
Pages1-43
Number of pages43
ISBN (Print)9780191717109, 9780199235889
DOIs
Publication statusPublished - 2008 May 1

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Keywords

  • Bank claims
  • Financial integration
  • Gravity model
  • International portfolio assets
  • Risk-sharing

ASJC Scopus subject areas

  • Arts and Humanities(all)

Cite this

Kim, S., Lee, J-W., & Shin, K. (2008). Regional and Global Financial Integration in East Asia. In China, Asia, and the New World Economy (pp. 1-43). Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199235889.003.0007