Arribas, Iván and Pérez, Francisco and Tortosa-Ausina, Emili (2009): The determinants of international financial integration revisited: the role of networks and geographic neutrality. Published in: Fundación BBVA - Documentos de Trabajo No. 15 (2009)
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Over the last two decades, the degree of international financial integration has increased substantially, becoming an important area of research for many financial economists. This paper explores the determinants of the asymmetries in the international integration of banking systems. We consider an approach based on both network analysis and the concept of geographic neutrality. Our analysis focuses on the banking systems of 18 advanced economies from 1999 to 2005. Results indicate that banking integration should be assessed from the perspective of both inflows and outflows, given that they show different patterns for different countries. Using standard techniques, our results reinforce previous findings by the literature—especially the remarkable role of both geographic distance and trade integration. Nonparametric techniques reveal that the effect of the covariates on banking integration is not constant over the conditional distribution which (in practical terms) implies that the sign of the relationship varies across countries.
|Item Type:||MPRA Paper|
|Original Title:||The determinants of international financial integration revisited: the role of networks and geographic neutrality|
|Keywords:||banking integration, geographic neutrality, network analysis, nonparametric regression|
|Subjects:||F - International Economics > F1 - Trade > F15 - Economic Integration
F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment; Long-Term Capital Movements
Z - Other Special Topics > Z1 - Cultural Economics; Economic Sociology; Economic Anthropology > Z13 - Economic Sociology; Economic Anthropology; Social and Economic Stratification
F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration
|Depositing User:||Francisco Pérez|
|Date Deposited:||19. Nov 2009 05:46|
|Last Modified:||21. Feb 2013 16:35|
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