Financial Integration in Asia: Estimating the Risk-Sharing Gains for Australia and Other Nations

Benoît Mercereau

No 2006/267, IMF Working Papers from International Monetary Fund

Abstract: Holding foreign assets reduces the volatility of a country's income by allowing countries to share risk. Yet, financial integration is limited in Asia. This paper estimates how much Australia and other countries in the Asia-Pacific region would gain from greater financial integration. The results suggest that these welfare gains are large, which argues in favor of a progressive capital account liberalization across the region.

Keywords: WP; gain; welfare gain; investor (search for similar items in EconPapers)
Pages: 20
Date: 2006-12-01
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Citations: View citations in EconPapers (2)

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