 A Note on Philippine Financial OpennessJose Antonio III Tan and Cayetano Paderanga No 199704, UP School of Economics Discussion Papers from University of the Philippines School of Economics Abstract: In 1991, the Philippines launched a series of foreign exchange reforms which partially opened the capital account. These set of reforms, if completed, will result in the financial integration of the economy with the global financial markets, thus, would complete the sequence of economic liberalization and integration. This study examines the degree of financial integration of the Philippnes with the international economy. In particular, two questions are to be answered. First, how financially integrated is the Philippines with the rest of the world? And, second, how has foreign exchange liberalization contributed to Philippine financial openness? Philippine financial openness is examined using the gross capital flows ratio, the Feldstein-Horioka regressions and variations of test based on uncovered interest parity. While the results confirm the substantial increase in gross capital flows, evidence using investment-saving correlation and arbitrage tests suggest that the degree of financial openness is still low. The empirical evidence also suggests that capital account liberalization has not contributed much to financial integration. Date: 1997-04 Published as UPSE Discussion Paper No. 1997-04, April 1997 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:phs:dpaper:199704 Access Statistics for this paper More papers in UP School of Economics Discussion Papers from University of the Philippines School of Economics Contact information at EDIRC. |
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