Integration between East and Southeast Asian equity markets

2015 ◽  
Vol 7 (2) ◽  
pp. 104-121 ◽  
Author(s):  
Nuruzzaman Arsyad
Keyword(s):  
Southeast Asia ◽  
Financial Crises ◽  
Market Integration ◽  
Financial Integration ◽  
Equity Markets ◽  
Equity Market ◽  
Southeast Asian ◽  
Asian Countries ◽  
Content Type ◽  
East And Southeast Asia

Purpose – This paper aims to seek to find answers to three questions. First, is there any possibility of long-term cointegration between East and Southeast Asian equity markets? If so, how many cointegrating equations are there? Second, what are the short-term causal relationships between equity markets in East and Southeast Asia? Third, what is the East Asia’s most influential equity market toward their Southeast counterparts, and vice versa? Design/methodology/approach – This study uses Johansen's (1988) cointegration method to test long-run relationships among East and Southeast Asian equity markets. With regards to short-run causal relationships, this study uses Granger-causality test as well as the forecast variance decomposition method. Findings – Johansen test proves that there is cointegration between East and Southeast Asian equity markets, but the integration process is not complete. Cointegrating vector also provides evidence that member countries of ASEAN+3 respond differently to external shocks. With regards to short-run causal direction, this study finds that Japan Granger-causes all equity markets in Southeast Asia, while Singapore and Vietnam Granger-cause all equity markets in East Asia. These results imply that Japan is the market with most linkages in Southeast Asia, while Singapore and Vietnam are the markets with most linkages to East Asia. Furthermore, forecast variance decomposition reveals that Japan is the East Asia’s most influential equity markets, while Singapore is the most influential equity market in Southeast Asia. This study suggests that policymakers in East and Southeast Asian countries to synchronize the capital market standards and regulations as well as to reduce the barriers for capital mobility to spur the regional equity market integration. Research limitations/implications – Increasing integration of East and Southeast Asian capital markets forces policymakers in ASEAN+3 countries to synchronize monetary policies, as it has been found that regionally integrated capital markets reduce the degree of independent monetary policy (Logue et al., 1976). It is therefore important for policymakers in East and Southeast Asian countries to assess the possibility of stock market integration within this region to anticipate the future risks associated with economic integration as well as to build collective regional institutions (Wang, 2004). Click and Plummer (2005) also argued that integrated stock markets is more efficient than nationally segmented equity markets, and the efficiency of Asian capital markets has been questioned in particular after the 1997 Asian financial crises. Yet, the empirical evidence on the extent of financial integration among ASEAN+3 member countries has been limited and inconclusive. This study is therefore an attempt to investigate the recent development of ASEAN+3 equity markets integration. Practical implications – This study focuses its attention on the existence and the extent of financial integration in East and Southeast Asia region, and it provides evidence that equity market integration in ASEAN+3 is far from complete, and for that reason, there is a need for policymakers in ASEAN+3 member countries to synchronize their standards and regulations. Furthermore, the policymakers in East and Southeast Asia can gain benefit from this study, as it provides the evidence that ASEAN+3 member countries respond differently to policy shocks, which may hinder the development of regional financial integration as well as the policy effectiveness of region-wide authority in ASEAN+3. Originality/value – This research is different from previous studies, as it puts the regional financial integration within the context of ASEAN+3 frameworks. Unlike previous research that considers East and Southeast Asian countries as an individual entity, this research considers East and Southeast Asia into two different blocks, following Tourk (2004) who documented that negotiation process for ASEAN+3 financial integration is conducted in sub-regional level (ASEAN vs East Asia), rather than national level (country per country basis). Second, this study covers the period after the 1997 Asian financial crisis. As suggested in Wang (2014), that the degree of stock market integration tends to change around the periods marked by financial crises, the updated study on Asian financial integration in the aftermath of 1997 financial crises is important to document the development of regional financial integration.

Comparative practices of food label claims from US, EU and selected Southeast Asian countries

2015 ◽  
Vol 32 (7) ◽  
pp. 530-541 ◽  
Author(s):  
May O. Lwin
Keyword(s):  
Southeast Asia ◽  
Food Products ◽  
Southeast Asian ◽  
Food Labels ◽  
Food Label ◽  
Asian Countries ◽  
Content Type ◽  
Wide Range ◽  
The Usa ◽  
Southeast Asian Countries

Purpose – The purpose of this paper is to fulfil gaps in knowledge regarding food packaging practices in Southeast Asia by examining the informational content of food labels on a variety of packaged foods. Design/methodology/approach – Using local and imported food products found in supermarkets in Singapore, a quantitative content analysis of food label claims in a wide range of packaged food products was conducted. A codebook was developed to capture the attributes of the food labels and claims, content categories, product names, food categories, sources of manufacture and countries of brand origin. The three main regions of analysis of country of manufacture were the USA, European Union (EU) and Southeast Asia. Findings – Analysis of food products manufactured in five Southeast Asian countries revealed the presence of various claims in food products, and a number of specific claims exceeded the percentages found in products from the USA or EU. The results showed that a significant proportion of products from Southeast Asian countries display nutrient content and nutrient function claims, as well as general marketing claims and non-nutrient claims. However, there were variations in practice amongst the five Southeast Asian countries. Research limitations/implications – The sample was limited in being collected from one geographic location. Future research needs to expand data collection both geographically and longitudinally. Practical implications – The findings are valuable for the national health authorities in addressing policies on food package labelling, and homogenization efforts pertaining to regional/international labelling policies. These in turn could influence food marketing practices. Social implications – The findings are useful in crafting educational programming and guidelines for health and nutrition education. Originality/value – This research is the first to explore food labelling practices in multiple Southeast Asian countries and compare them cross-sectionally with EU and US practices.

Sustainable property development by Southeast Asian property companies

2017 ◽  
Vol 35 (1) ◽  
pp. 109-126 ◽  
Author(s):  
Muhammad Najib Razali ◽  
Norhidayah Md. Yunus ◽  
Ainur Zaireen Zainudin ◽  
Janice Lee Yim Mei
Keyword(s):  
Southeast Asia ◽  
The Philippines ◽  
Southeast Asian ◽  
Annual Reports ◽  
Asian Countries ◽  
Property Development ◽  
Content Type ◽  
Property Companies ◽  
Sustainability Practices ◽  
Southeast Asian Countries

Purpose The purpose of this paper is to assess the sustainability levels in terms of sustainability practices amongst public-listed property companies in Southeast Asia. Design/methodology/approach The websites and annual reports for each company were assessed to determine the level of sustainability practices amongst property companies in Southeast Asia. Their sustainability strategies were then rigorously assessed by using a scorecard which assesses sustainability levels based on related issues. Findings The results show that green or sustainable property development in Southeast Asian countries remains at a moderate level. There is still much room for improvement to enhance the level of green attributes in property development. Research limitations/implications This paper only assesses property development companies in five Southeast Asian countries; namely, Singapore, Malaysia, Thailand, Indonesia and the Philippines. Originality/value Given the increasingly significant sustainability issues – especially amongst international property development players, this paper attempts to deliver better informed investment and decision-making ideas for sustainable property developments.

The Global Environmental Agenda of 2021 and the tasks of sustainable energy-ecological development and cooperation between Japan and countries Southeast Asia

2021 ◽  
pp. 951-965
Author(s):  
Yana Vadimovna Mishchenko
Keyword(s):  
Southeast Asia ◽  
Power Plants ◽  
Thermal Power ◽  
Energy Transition ◽  
Southeast Asian ◽  
Asia Pacific ◽  
Asian Countries ◽  
Global Environmental ◽  
The World ◽  
Southeast Asian Countries

The article discusses the main results of two major international summits held in October-November 2021, the key topics of which were the issues of the global fight against climate change and environmental protection. The decisions taken at these conferences, with the broad participation of world leaders, reflect the fundamental trends of the global environmental agenda. Within the framework of this agenda, Japan and the countries of Southeast Asia are building their modern energy and environmental cooperation. In this context, the article examines the main urgent tasks of energy-environmental interaction and sustainable development of Japan and the states of Southeast Asia. These countries are located in the Asia-Pacific region, which remains until now the main emitter of greenhouse gases in the world. However, the indicators of environmental pollution by Japan and the Southeast Asian countries are relatively not so high, compared to some other states in the region and the world. The article discusses the most relevant and significant examples of bilateral and multilateral cooperation between these countries in areas related to curbing global warming and climate protection. It has been revealed that with all the efforts made, since the 1990s, the indicators of reducing harmful emissions into the atmosphere in Japan remain modest and even lag behind some of the Western countries. The Southeast Asian countries show a serious attitude to the development of renewable energy, but their intention to abandon coal still raises some doubts about the methods of implementing this ambitious plan. In particular, it is currently not entirely clear whether these countries are preparing to make a full-fledged "energy transition" in the coming decades, or whether they just intend to replace their coal-fired thermal power plants with gas ones.

scholarly journals An analysis of CEE equity market integration and their volatility spillover effects

2019 ◽  
Vol 29 (1) ◽  
pp. 23-40 ◽  
Author(s):  
Ngo Thai Hung
Keyword(s):  
Market Integration ◽  
Design Methodology ◽  
Spillover Effects ◽  
Equity Market ◽  
Multivariate Garch ◽  
The Czech Republic ◽  
Content Type ◽  
Volatility Spillovers ◽  
Conditional Correlations ◽  
Practical Implications

Purpose The purpose of this paper is to examine the conditional correlations and spillovers of volatilities across CEE markets, namely, Hungary, Poland, the Czech Republic, Romania and Croatia, in the post-2007 financial crisis period. Design/methodology/approach The authors use five-dimensional GARCH-BEKK alongside with the CCC and DCC models. Findings The estimation results of the three models generally demonstrate that the correlations between these markets are particularly significant. Also, own-volatility spillovers are generally lower than cross-volatility spillovers for all markets. Practical implications These results recommend that investors should take caution when investing in the CEE equity markets as well as diversifying their portfolios so as to minimize risk. Originality/value Unlike the previous studies in this field, this paper is the first study using multivariate GARCH-BEKK alongside with CCC and DCC models. The study makes an outstanding contribution to the existing literature on spillover effects and conditional correlations in the CEE financial stock markets.

scholarly journals Multifactor APT Approach towards Predicted Patterns of Long-term ASEAN Financial Market Integration

2018 ◽  
Author(s):  
Andysah Putera Utama Siahaan ◽  
Rusiadi
Keyword(s):  
Data Analysis ◽  
Financial Market ◽  
Market Integration ◽  
Southeast Asian ◽  
Asian Countries ◽  
Financial Market Integration ◽  
Asean Country ◽  
Asean Countries ◽  
Southeast Asian Countries

The purpose of this study is to obtain a predictive pattern of the integration of ASEAN financial markets with the Multifactor Arbitrage Pricing Theory (APT) approach. The specific target in this study is Analyzing the effectiveness of the Multifactor APT Model in forming a predictive pattern of financial market integration in Southeast Asian countries, both in the short, medium and long-term. Establish the fastest and most appropriate ASEAN country in predicting financial market integration in Southeast Asian countries, both in the short, medium and long-term. The hypothesis in this study is that the Multifactor APT model is useful in forming a predictive pattern of financial market integration in Southeast Asian countries. Indonesia is the fastest and appropriate ASEAN country to use in predicting the occurrence of financial market integration in Southeast Asian countries. The data analysis model used is Vector Autoregression (VAR), Impulse Response Function (IRF), Forecast Error Variance Decomposition (FEVD). The assumption test used is Stationarity Test, Cointegration Test, Lag Stability Test, VAR Structure and Determination of Optimal Lag Levels. The results of data analysis with VAR are expected to be able to form a pattern of predictions of effective financial market integration in ASEAN countries. Varian Decomposition results can determine which ASEAN countries are the fastest and most appropriate in predicting the occurrence of financial market integration in Southeast Asian countries, both in the short, medium and long-term.

scholarly journals Living in the Shadow of Mainland China - On Delineating Social and Political Constrains Among Southeast Asian Chinese Entrepreneurs

2008 ◽  
Vol 25 ◽  
pp. 28-49
Author(s):  
Michael Jacobsen
Keyword(s):  
Southeast Asia ◽  
Mainland China ◽  
Southeast Asian ◽  
Chinese Economy ◽  
National Politics ◽  
Mainland Chinese ◽  
Ethnic Chinese ◽  
East And Southeast Asia ◽  
Chinese Entrepreneurs ◽  
The Individual

Abstract Taking a point of departure in the fluid political and economic landscape of East and Southeast Asia, this paper focuses on ethnic Chinese SME entrepreneurs in Southeast Asia, who are gradually becoming the focus in a discussion of whether a rising Mainland Chinese economy is a positive or negative force in Asia. Contrary to the coherent nature usually associated with this particular ethnic group, this article argues, that in fact it is divided into many smaller factions. This differentiation of the ethnic Chinese community in Southeast Asia, it is argued, is a reflection of many different influences from, especially, colonialism, and different contemporary social and political developments within the individual Southeast Asian countries. This increasing societal complexity makes ethnic Chinese entrepreneurs vulnerable in the wake of a rising Mainland Chinese economy, as they await to see if the latter impacts positively or negatively on the various Southeast Asian economies, thus indirectly influencing how they are embedded within their societies. Keywords: China, Southeast Asia, Indonesia, Malaysia, Chinese entrepreneurship, national politics, ethnicity.

ANALISA (MIS) MATCH TENAGA KERJA DI ASIA TENGGARA

2021 ◽  
Vol 2 (2) ◽  
pp. 133-149
Author(s):  
Aning Kesuma Putri ◽  
Ratu Eva Febriani
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Southeast Asia ◽  
Secondary Data ◽  
Southeast Asian ◽  
Asian Countries ◽  
Job Market ◽  
Match Model ◽  
Timor Leste ◽  
Southeast Asian Countries

The mismatch between jobs and skills indicates the match model in the job market is not going well, which is referred to as (e.g.) labor match, which leads to overeducation and undereducation in the job market. This research was conducted to find the influence of growth, overeducation and undereducation on wages in Southeast Asia. The data used is secondary data sourced from https://ilostat.ilo.org/data/ data in 2010-2019, especially in 8 Southeast Asian countries consisting of Brunai Darusalam, Philippines, Laos, Indonesia, Cambodia, Thailand, Timor Leste and Vietnam. The results found that the workers with the highest undereducated levels were in Timor Laste, then Laos and Cambodia. Worker conditions in developing countries such as Southeast Asia have more undereducation conditions than overeducation. Economic growth, overeducation and undereducatio affect workers' wages. Keywords: overeducation, undereducation, mismatch, labor 

The Countries of Southeast Asia and the Chinese Initiative Belt and Road: a Model of Interaction

2021 ◽  
Vol 65 (10) ◽  
pp. 91-102
Author(s):  
N. Rogozhina
Keyword(s):  
Southeast Asia ◽  
Positive Impact ◽  
Political Influence ◽  
The Philippines ◽  
Southeast Asian ◽  
Belt And Road Initiative ◽  
Asian Countries ◽  
Belt And Road ◽  
The Belt And Road ◽  
Southeast Asian Countries

The choice of the countries of Southeast Asia as an example for analyzing the nature of interaction between developing countries and China within the framework of the Belt and Road Initiative is not accidental. The very logic of China’s stated goals of gaining dominant positions in the world economy and politics makes it inevitable that the countries of Southeast Asia located in geographic proximity to it are included in its long-term economic and political plans. The question, however, is to what extent do they meet the interests of the Southeast Asian countries themselves? The solution to this question is the main subject of research in the article. There are objective prerequisites for mutually beneficial cooperation. The Belt and Road projects are viewed by China as a tool for economic expansion into the region with the prospect of taking a leading position there, using the interest of Southeast Asian countries in the inflow of foreign investment to create modern infrastructure, the lack of which narrows their opportunities for further economic growth, maintaining competitiveness and developing integration ties within ASEAN Community. Expert assessments made by international organizations confirm the positive impact of OBOR projects on the economic development of Southeast Asian countries and although today it is too early to draw any conclusions, since the initiative is only at the initial stage of its implementation in the region, nevertheless the case studies presented in the article indicate a mismatch in the positions of the parties on a number of issues related to the financing of projects, their lack of transparency. non-compliance with environmental and social requirements. The support of the initiative on the part of the Southeast Asian countries does not automatically mean their acceptance of the terms of the agreements proposed by China, which are far from always consistent with their national interests and give rise to fears in society about its expansionist intentions. Therefore, in many Southeast Asian countries, participation in OBOR projects is turning into a subject of political discourse, which reflects the presence of disagreements in society and confrontation of interests regarding the advisability of rapprochement with China, given the associated economic and political risks. The countries of Southeast Asia can be conditionally divided into two groups according to their relation to the Belt and Road initiative. The first group includes Indonesia, Malaysia, Singapore, the Philippines, Thailand, Vietnam and Myanmar, whose position can be described as national pragmatism. While supporting the Chinese initiative in general, they nevertheless assess the possible risks of their participation in projects and seek to reduce them. The second group is represented by Laos and Cambodia, whose leadership unconditionally supports the Chinese initiative, guided by the interests of their own survival, which largely depends on Chinese assistance. Therefore, the prospect of falling into a debt trap and increasing economic dependence on the PRC and even the threat of losing sovereignty does not deter them from participating in highly controversial projects from a commercial point of view. Based on the analysis made, the author comes to the conclusion that, given the existing alignment of political forces in Southeast Asia, China can count on promoting its initiative in the region, which, however, does not automatically lead to an increase in its political influence and to the creation of a China-centric model of regional order. Acknowledgements. The article was prepared within the project “Post-crisis world order: challenges and technologies, competition and cooperation” supported by the grant from Ministry of Science and Higher Education of the Russian Federation program for research projects in priority areas of scientific and technological development (agreement № 075-15-2020-783).

Nexus between Southeast Asian stock markets, bitcoin and gold: spillover effect before and during the COVID-19 pandemic

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yosuke Kakinuma
Keyword(s):  
Southeast Asia ◽  
Stock Markets ◽  
Spillover Effect ◽  
Spillover Effects ◽  
Southeast Asian ◽  
Series Data ◽  
Financial Assets ◽  
Volatility Spillover ◽  
Content Type ◽  
Asset Classes

Purpose This study aims to provide empirical evidence on the return and volatility spillover effects between Southeast Asian stock markets, bitcoin and gold in the periods before and during the COVID-19 pandemic. The interdependence among different asset classes, the two leading stock markets in Southeast Asia (Singapore and Thailand), bitcoin and gold, is analyzed for diversification opportunities. Design/methodology/approach The vector autoregressive-Baba, Engle, Kraft, and Kroner-generalized autoregressive conditional heteroskedasticity model is used to capture the return and volatility spillover effects between different financial assets. The data cover the period from October 2013 to May 2021. The full period is divided into two sub-sample periods, the pre-pandemic period and the during-pandemic period, to examine whether the financial turbulence caused by COVID-19 affects the interconnectedness between the assets. Findings The stocks in Southeast Asia, bitcoin and gold become more interdependent during the pandemic. During turbulent times, the contagion effect is inevitable regardless of region and asset class. Furthermore, bitcoin does not provide protection for investors in Southeast Asia. The pricing mechanism and technology behind bitcoin are different from common stocks, yet the results indicate the co-movement of bitcoin and the Singaporean and Thai stocks during the crisis. Finally, risk-averse investors should ensure that gold constitutes a significant proportion of their portfolio, approximately 40%–55%. This strategy provides the most effective hedge against risk. Originality/value The mean return and volatility spillover is analyzed between bitcoin, gold and two preeminent stock markets in Southeast Asia. Most prior studies test the spillover effect between the same asset classes such as equities in different regions or different commodities, currencies and cryptocurrencies. Moreover, the time-series data are divided into two groups based on the structural break caused by the COVID-19 pandemic. The findings of this study offer practical implications for risk management and portfolio diversification. Diversification opportunities are becoming scarce as different financial assets witness increasing integration.

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