Financial Integration in Asia: A Macroeconomic Perspective
Biplab Kumar Guru and
Inder Sekhar Yadav
The Developing Economies, 2021, vol. 59, issue 1, 64-101
Abstract:
This study examines the effect of financial integration on growth, total factor productivity, and capital accumulation using a dynamic panel system‐GMM for a dataset consisting of 43 Asian economies from 1995 to 2015. The impact of de jure financial openness on output, productivity, and capital stock growth is significant, while the effect of de facto financial integration is fuzzy. The disaggregate asset classes (namely, inflows of foreign direct investment and debt) are found to facilitate higher output while derivative inflows yield an undesirable effect. For developing countries, financial openness significantly boosts productivity and capital accumulation while for less developed countries it only enhances productivity. The negative impact of the currency crisis on growth and capital accumulation is found to be significant for more open economies. The currency crisis is more prominent for developed economies, partially effective for less developed countries, and partially ineffective for developing economies in Asia.
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (4)
Downloads: (external link)
https://doi.org/10.1111/deve.12264
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:bla:deveco:v:59:y:2021:i:1:p:64-101
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0012-1533
Access Statistics for this article
The Developing Economies is currently edited by Katsuji Nakagane
More articles in The Developing Economies from Institute of Developing Economies Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery (contentdelivery@wiley.com).