Is Economic Development Promoting Monetary Integration in East Asia?

Kentaro Kawasaki and Zhiqian Wang

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: This paper aims to investigate whether there exist international integrated markets among East Asian economies by employing the generalized purchasing power parity (G-PPP) model, which then would help to suggest whether or not the East Asian region is an optimum currency area (OCA). The empirical results in this paper suggest that holding the G-PPP among nine Asian countries (China, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand, and Vietnam) is more applicable in 2000-2013 than in 1984-1997. In the period of "globalization," which is characterized by the expansion of world trade, an increase of international capital flows, and development of information and communications technologies, Asian economic development has been promoting not only economic integrations but also constructing the stable linkages of real exchange rates. Therefore, it would be helpful to adopt regional coordination for monetary policies to assure the feasibility of a possible monetary union.

Pages: 39 pages
Date: 2015-04
New Economics Papers: this item is included in nep-mon and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/15e052.pdf (application/pdf)

Related works:
Journal Article: Is Economic Development Promoting Monetary Integration in East Asia? (2015)
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:eti:dpaper:15052

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().