Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/109531
Authors: 
Lee, Jong-Wha
Year of Publication: 
2008
Series/Report no.: 
ADB Working Paper Series on Regional Economic Integration 13
Abstract: 
This paper analyzes the patterns and determinants of financial integration in East Asia by using the data set of cross-border holdings of financial assets such as equity portfolio, long-term and short-term debt securities, and bank claims. Empirical analysis based on the gravity model of bilateral international asset holdings shows that financial integration among East Asian economies, particularly in equity and debt securities, is relatively lower than in Europe. A large part of regional financial integration in East Asia is due to heavy intra-regional trade in goods-after controlling for bilateral trade volume, East Asia's relatively lower regional integration becomes apparent. The relative lack of financial integration is due largely to underdeveloped financial infrastructure, a low level of capital account liberalization, and higher exchange volatility.
Subjects: 
Cross-border portfolio investment
financial integration
East Asia
gravity model
JEL: 
F21
F36
F41
G15
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/igo
Document Type: 
Working Paper

Files in This Item:
File
Size
522.3 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.