Economic and Financial Integration in South Asia

2016 ◽  
pp. 298-315
Author(s):  
Piyadasa Edirisuriya ◽  
Abeyratna Gunasekarage
Keyword(s):  
South Asia ◽  
Financial Market ◽  
Market Integration ◽  
Financial Integration ◽  
Cost Benefit ◽  
The South ◽  
Economic Activities ◽  
Economic Sectors ◽  
Financial Market Integration ◽  
Almost All

Many countries in the South Asia region are global players in many aspects due to the nature of emerging markets as well as being democratic countries irrespective of the fact that many people in the region are troubled by higher level of poverty. Many years of regulation in the South Asian region has hampered economic growth and reduced the level of efficiencies in almost all economic activities. However, implementation of market deregulations since the early 1980s in many sectors has benefited the majority of countries in the region in a number of ways. Among others, one of the most significant benefits is the integration of markets in the financial as well as other economic sectors generating better economic achievements. In this study, we examine the process of economic and financial market integration as well as cost/benefit of such a process. We find significant benefits of economic and financial market integration to the region.

Durability and Change in Financial Systems

2016 ◽  
Author(s):  
Richard Deeg ◽  
Elliot Posner
Keyword(s):  
Financial Market ◽  
Market Integration ◽  
Analytical Approach ◽  
Financial Regulation ◽  
Financial Integration ◽  
Historical Institutionalism ◽  
Financial Systems ◽  
Financial Market Integration ◽  
European Financial Integration

Historical institutionalism features extensively in the study of banking and financial regulation in Europe. This chapter reviews scholarship that explicitly, implicitly or inadvertently draws heavily on that tradition’s central tenets. The authors find that historical institutionalism can help explain the emergence, persistence, and evolution of distinct kinds of financial systems in Europe, as well as the pattern and effects of European financial integration. However, they find there is considerable untapped potential for historical institutionalism as an analytical approach for studying European financial market integration and regulation.

scholarly journals FINANCIAL MARKET INTEGRATION IN ASIA: EVIDENCE FROM STOCK AND BOND MARKET

2018 ◽  
Vol 15 (01) ◽  
pp. 27
Author(s):  
Fauziah Fauziah
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Market Integration ◽  
Financial Integration ◽  
Empirical Studies ◽  
Bond Market ◽  
Stock Market Integration ◽  
Financial Market Integration ◽  
Stochastic Trends ◽  
Causality Tests

Financial integration especially in Asian financial market has been a defining feature of the world economy and has become a central issue in international finance for the past decades. However, there is limited empirical studies on the integration of Asian bond market. Therefore, this study aims to examine the financial market integration in Asia (Stock and Bond Market). The sample of this study is the major of Asian financial markets including Japan, China, Hong Kong, Singapore and South Korea during January 2009 – December 2016. Correlation, co-integration and causality tests used in this study to investigate the financial markets integrations. This study shows that both stock and bond returns are co-integrated and indicate as a common stochastic trends. Stock market integration appears to be much stronger compared to the less developed. This result is very important for investors to assess potential gains from portfolio diversification, and for a financial policymaker to manage market policies effectively and handle contagion risks that might be caused by international shock transmissions.

scholarly journals Financial market integration and co-movements among the growth rates: Evidence from South Asian countries

2011 ◽  
Vol 8 (2) ◽  
pp. 203-216
Author(s):  
Piyadasa Edirisuriya
Keyword(s):  
Economic Growth ◽  
South Asia ◽  
South Asian ◽  
Financial Market ◽  
Growth Rates ◽  
Market Integration ◽  
The European Union ◽  
Asian Countries ◽  
Financial Market Integration ◽  
The Impact

Since the 1980s, South Asian countries have been implementing financial market deregulation policies continuously. Although the process of deregulations has been slow, many countries in the region are heading toward a more integrated market despite current global turmoil. Financial market integration in South Asia could have synchronised economic activities of the countries in the region due to the impact of consolidation. This suggests that when the region’s economies grow/contract, all countries could follow the same path demonstrating a co-movement of growth rates among countries. When economic growth rates are similar for a region, it may be easier to formulate economic policies to achieve a common goal. As the political leadership of South Asia has agreed to work towards forming an economic block similar to that of the European Union and ASIAN, examining co-movement of growth rates could shed more lights on the issue of the success of market integration in the region. The objective of this study is to study market integration by analysing financial markets, trade and economic growth data to spot whether there is any co-movement of growth rates among South Asian countries due to financial market deregulation policies implemented so far. As findings show mix results, we used region’s governance indicators to examine further and found that weak governance is a serious problem in the South Asian region.

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