East Asian financial integration in banking, markets and regulation

2021 ◽  
pp. 299-320
Author(s):  
Donald Hanna
Keyword(s):  
Financial Integration ◽  
East Asian ◽  
Banking Markets

REAL EXCHANGE RATE AND ECONOMIC GROWTH IN EAST ASIAN COUNTRIES: THE ROLE OF FINANCIAL INTEGRATION

2017 ◽  
Vol 62 (01) ◽  
pp. 163-177 ◽  
Author(s):  
PHAM VAN DAI ◽  
SARATH DELPACHITRA ◽  
SIMON COTTRELL
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Financial Integration ◽  
East Asian ◽  
Asian Countries ◽  
Explanatory Variables ◽  
Interaction Terms ◽  
Low Degree

This study examines the role of financial integration in determining the relationship between the real exchange rate (RER) and economic growth in East Asian countries. It hypothesizes that a competitive RER could play a greater role in promoting economic growth in countries with a low degree of financial integration. A growth model was specified using a RER misalignment index and its interaction terms with financial integration as explanatory variables. Different proxies for financial integration were employed to verify the interaction. The empirical results demonstrate the significance of the interaction terms and largely validate the hypothesis. This result demonstrates that a competitive RER policy is not a general solution for economic growth and its effectiveness could largely depend on a country’s degree of financial integration.

scholarly journals Does Financial Integration Matter for Financial Development? Evidence from the East Asian and Pacific Region

2019 ◽  
Vol 34 (4) ◽  
pp. 591-618 ◽  
Author(s):  
Farhad Taghizadeh-Hesary ◽  
Nguyet Thi Minh Phi ◽  
Hanh Hoang Thi Hong ◽  
Vu Tuan Chu
Keyword(s):  
Financial Development ◽  
Financial Integration ◽  
East Asian ◽  
Pacific Region

scholarly journals Financial integration of East Asian economies: evidence from real interest parity

2011 ◽  
Vol 43 (16) ◽  
pp. 1979-1990 ◽  
Author(s):  
Ahmad Zubaidi Baharumshah ◽  
Chan Tze Haw ◽  
A. Mansur M. Masih ◽  
Evan Lau
Keyword(s):  
Financial Integration ◽  
East Asian ◽  
Asian Economies ◽  
Interest Parity ◽  
Real Interest Parity ◽  
East Asian Economies

Asymmetric Effects on East Asian Financial Integration: Is There "Japanese Dominance"?

2007 ◽  
Vol 10 (02) ◽  
pp. 193-214 ◽  
Author(s):  
Ying Huang ◽  
Feng Guo
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Interest Rates ◽  
Empirical Evidence ◽  
Financial Integration ◽  
East Asian ◽  
Transmission Mechanism ◽  
Weak Version ◽  
Asymmetric Effects ◽  
The Us

This paper examines the extent of asymmetric effects and the hypothesis of Japanese dominance in East Asian financial integration by analyzing the transmission mechanism to local interest rates from interest rates originating in both Japan and the US. The results support a weak version of the hypothesis in the cases of Malaysia and Taiwan, since there exist unidirectional causality effects from Japan. In addition, empirical evidence indicates that the sensitivity of local interest rates to US interest rate has declined in Korea and Thailand after they abandoned pegged exchange rate regimes in the post-crisis period.

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