Regional financial integration in ASEAN in the comparative perspective

Vinokurov, Evgeny (2017): Regional financial integration in ASEAN in the comparative perspective.

Abstract

ASEAN regional financial integration evolves within four domains: the banking sector, liberalizing foreign direct investments, liberalizing capital flows, and ensuring regional financial stability. Progress so far has been limited. Regional integration as concerns the liberalization of capital markets and, in particular, the banking sector, proceeds with the most difficulty. By most criteria, ASEAN is well positioned to benefit from deeper financial integration. Comparative analysis also demonstrates that there is a substantial ‘learning factor’ in this technically complicated field: while ASEAN learns about the EU, the Eurasian Union is taking a close look at ASEAN’s experience of integration of the financial markets.

• Item Type: MPRA Paper
• Language: English
• Keywords: ASEAN, regional integration, financial integration, financial stability, capital market, foreign direct investment
• 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; F - International Economics > F3 - International Finance > F34 - International Lending and Debt Problems; F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration; G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets

References

ADB, ASEAN. 2013. The Road to ASEAN Financial Integration: A Combined Study on Assessing the Financial Landscape and Formulating Milestones for Monetary and Financial Integration in ASEAN. Manila: Asian Development Bank.

ADB. 2016. ASEAN Infrastructure Fund. Manila: ADB. Available at: https://www.adb.org/sites/default/files/publication/221281/aif-brochure-2016.pdf

Aizenman, J., Jinjarak, Y., & Park, D. 2011. Evaluating Asian Swap Arrangements. Asian Development Bank Institute Working Paper, No. 297. Available at: https://www.adb.org/sites/default/files/publication/156152/adbi-wp297.pdf.

Almekinders, G., Fukuda, S., Mourmouras, A., Zhou, J., & Zhou, Y. S. 2015. ASEAN Financial Integration. IMF Working Paper, WP/15/34/, February. Available at: https://www.imf.org/external/pubs/ft/wp/2015/wp1534.pdf

ASEAN. 2015a. ASEAN Investment Report 2015: Infrastructure Investment and Connectivity. Jakarta: ASEAN Secretariat. Available at: http://www.asean.org/wp-content/uploads/2015/12/ASEAN-Investment-Report-2015.pdf

ASEAN. 2015b. AEC Blueprint 2025. http://www.asean.org/storage/images/2015/November/aec-page/AEC-Blueprint-2025-FINAL.pdf, available as of October 1, 2017.

ASEAN. 2016. Economic Community Chartbook 2016.

Calvi, R. 2010. Assessing Financial Integration: A Comparison between Europe and East Asia. European Economy - Economic Papers, No. 423. Available at: http://ec.europa.eu/economy_finance/publications/economic_paper/2010/pdf/ecp423_en.pdf.

Chia, S.Y., & Plummer M. 2015. Asian Economic Cooperation and Integration. Progress, Challenges and Future Directions. Cambridge: Cambridge University Press.

Chinn, Menzie D., & Ito, H. 2006. What Matters for Financial Development? Capital Controls, Institutions, and Interactions. Journal of Development Economics, 81 (1), October, pp. 163-192.

EDB Centre for Integration Studies. 2017a. Exchange Rate Fluctuations within the EAEU in 2014–2015: Analysis and Recommendations. Report No. 44. Saint Petersburg: Eurasian Development Bank. Available at: https://eabr.org/en/analytics/integration-research/cii-reports/exchange-rate-fluctuations-within-the-eaeu-in-2014-2015-analysis-and-recommendations/ (In Russian).

EDB Centre for Integration Studies. 2017b. An Assessment of Barriers to Increasing the Volume of National Currencies in the EAEU Mutual Transaction. Report No. 47. Saint Petersburg: Eurasian Development Bank (in Russian).

Eurofi. 2011. The Europe 2020 Project Bond Initiative. The Eurofi Financial Forum, September 15-16, Wroclaw. Available at: https://www.eurofi.net/wp-content/uploads/2012/11/The-Europe-2020-Project-bond-initiative.pdf

Kose, M. A., Prasad, E. S., Rogoff, K. S., & Wei, Sh.-J. 2009. Financial Globalization and Economic Policies. Brookings Global Economy and Development Working Paper, No. 34, April. Available at: https://www.brookings.edu/wp-content/uploads/2016/06/04_financial_globalization_prasad.pdf.

Kose, M. A., Prasad, E. S., Rogoff, K., & Wei, Sh.-J. 2006. Financial Globalization: A Reappraisal. NBER Working Paper, No. 12484, August. Available at: http://www.nber.org/ papers/w12484.

Kose, M. A., Prasad, E. S., & Taylor, A. D. 2009. Thresholds in the Process of International Financial Integration. Brookings Global Economy and Development Working Paper, No. 35, May. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1408154.

Kurihara, T. 2012. Achievements of Asian Bond Markets Initiative (ABMI) in the Last Decade and Future Challenges. OECD-ADBI 12th Roundtable on Capital Market Reform in Asia, February 7, Tokyo. Available at: https://www.oecd.org/finance/financial-markets/49700575.pdf.

Lee, I. 2012. Ten Years of the Asian Bond Markets Initiative (ABMI). KCMI Capital Market Opinion, May 8. Available at: http://www.ksri.org/kcmifile/cmweekly_eng/olddata/77_1_1.pdf.

Nipawan, P. 2015. The ASEAN Way of Investment Protection: An Assessment of the ASEAN Comprehensive Investment Agreement. PhD thesis, University of Glasgow. Available at: http://theses.gla.ac.uk/6954/

Pelkmans, J. 2018. ASEAN Economic Community, Pragmatism versus Conceptualism. Mimeo. Asia-Pacific Business Review

Ramkishen, S. R. 2012. Management of Exchange Rate Regimes in Emerging Asia. Review of Development Finance, 2 (2), April–June, 53-68.

Schoenmaker, D. 2011. The Financial Trilemma. Economics Letters, 111 (1): 57-59.

Shimizu, S. 2014. ASEAN Financial and Capital Markets: Policies and Prospects of Regional Integration. Pacific Business and Industries, 14 (54). Available at: https://www.jri.co.jp/MediaLibrary/file/english/periodical/rim/2014/54.pdf.

Thavaramara, T. 2010. Progress and Issues in Capital Markets Integration: ASEAN Experience. OECD-ADBI 11th Roundtable on Capital Market Reform in Asia, February 23, Tokyo. Available at: https://www.oecd.org/finance/financial-markets/44921142.pdf.

Volz, U. 2013. ASEAN Financial Integration in the Light of Recent European Experiences. SOAS, University of London and German Development Institute, May 12. Available at: http://eprints.soas.ac.uk/16679/1/ASEAN%20Financial%20Integration%20in%20the%20Light%20of%20Recent%20European%20Experiences%2012May2013.pdf

Yamaguchi, A. 2014. Progress of Bond Markets in East Asia. Institute for International Monetary Affairs Newsletter, No. 20. Available at: https://www.iima.or.jp/Docs/newsletter/2014/NL2014No_20_e.pdf

Wei, S.-J. 2001. Domestic crony capitalism and international fickle capital: Is there a connection? International Finance, Spring, 15–46.