Financial Market Integration in East Asia: Regional or Global?

2006 ◽  
Vol 5 (1) ◽  
pp. 73-89 ◽  
Author(s):  
Jongkyou Jeon ◽  
Yonghyup Oh ◽  
Doo Yong Yang
Keyword(s):  
East Asia ◽  
Financial Market ◽  
Regional Integration ◽  
Market Integration ◽  
Asset Price ◽  
The United States ◽  
Market Mechanism ◽  
Global Integration ◽  
Financial Market Integration ◽  
Price Approach

This paper investigates whether financial markets in East Asia are integrated with global markets or with each other.We use two approaches: a volume-based approach and an asset price approach. Our overall results suggest global integration of these markets rather than regional integration and that there is no anchor market in the region that would match the advanced markets such as the United States. Though global integration is not a force that competes with regional integration, there seems to be no strong sign of the creation of an effective financial market mechanism in East Asia.

Economic Integration and Changes in the Business Cycle in East Asia: Is the Region Decoupling from the Rest of the World?

2009 ◽  
Vol 8 (1) ◽  
pp. 107-140 ◽  
Author(s):  
Yung Chul Park ◽  
Kwanho Shin
Keyword(s):  
United States ◽  
Business Cycle ◽  
East Asia ◽  
Regional Integration ◽  
Financial Integration ◽  
The United States ◽  
Trade Integration ◽  
Global Integration ◽  
Trade Relations ◽  
The Business Cycle

Countries in East Asia (EA) have made a great deal of progress in integrating their economies since the early 1990s. There has been a sustained increase in intra-regional trade in EA. On finance, however, regional financial integration has been lagging behind trade integration and EA has reached out to global financial markets to effect deeper global integration. The purpose of this paper is to analyze the effects of intra-regional and extra-regional financial integration on changes in the pattern of EA's business cycle since 1990 to see whether there is any ground for “decoupling” of EA from the United States and the EU. On trade relations, the empirical results show that deepening trade integration contributes to more synchronized output movements among EA countries. There is also evidence that financial integration enhances more synchronization of output, but because its impact is not strong, the extra-regional integration does not necessarily dispute the prediction that EA's output movement has become more idiosyncratic than before, and therefore less closely tied with that of the United States.

scholarly journals Financial Market Integration: Empirical Evidence from the COMESA

2015 ◽  
Vol 5 (2) ◽  
pp. 242
Author(s):  
Aklilu Gebrehiwot ◽  
Mustafa Sayim
Keyword(s):  
Financial Market ◽  
Regional Integration ◽  
Market Integration ◽  
International Markets ◽  
Global Market ◽  
Regional Market ◽  
Financial Market Integration ◽  
Long Run ◽  
Eastern And Southern Africa ◽  
The U.S

<p class="ber"><span lang="EN-GB">The purpose of this research paper is to investigate the level of financial market integration in the COMESA (The Common Market for Eastern and Southern Africa) regional market over the period from January 2005 to December 2013 using monthly data. Due to data constraint, we select ten countries from the COMESA regional market that have relatively stable data. We also include two big international markets - China and the U.S. to assess the level of integration of the regional market with two of the key global market leaders. To analyze the long-run relationship among the markets, we use the Level-VAR procedure that was proposed by Toda and Yamamato (1995).</span></p><p class="ber"><span lang="EN-GB">Despite the establishment of NEPAD (The New Partnership for Africa’s Development) to promote free trade zone and regional integration, and the advent of structural adjustments, we find that the level of financial market integration in the COMESA regional market is not significant, and most of the markets are still fragmented. The financial market integration of the regional market (COMESA) with the two big international markets - China and the U.S. is not also significant to realize integration with the global market leaders.</span></p>

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