Skip to main content
SpringerLink
Log in

Is India Key to Asian Financial Integration?

  • Chapter
  • First Online:
Towards A Common Future

Abstract

This chapter investigates the status of financial integration among the Asian economies by analysing several measures of financial integration. Moreover, it provides an in-depth analysis of the status of sub-regional integration within Asia, viz. economic freedom, capital control, foreign direct, portfolio investment etc. It is observed that the East and Southeast Asian integration is far ahead of that of South Asia. Apart from the already leading role of Japan, India is likely to play a significant role in the entire economic integration at the regional level since India has a unique role to play in the integration of South Asia.

The author gratefully acknowledges the research assistance from Amrita Sanyal. However, the usual disclaimer applies.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 109.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 139.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 139.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    KAOPEN is based on the binary dummy variables that codify the tabulation of restrictions on cross-border financial transactions reported in the IMF’s Annual Report on Exchange Arrangements and Exchange Restrictions (AREAER), which contains information on regulatory restrictions on cross-border financial transactions.

References

  • Ahmed, A. D. (2016). Integration of Financial Markets, Financial Development and Growth: Is Africa Different? Journal of International Financial Markets, Institutions & Money, 42, 43–59.

    Article  Google Scholar 

  • Ananchotikul, N., Piao, S., & Zoli, E. (2015). Drivers of Financial Integration – Implications for Asia (IMF Working Paper No. WP/15/160). Washington, DC: IMF.

    Google Scholar 

  • Bank for International Settlements (BIS). (2008). Sinha, Chandan and Narayan C. Pradhan, India’s Financial Openness and Integration with Southeast Asian Countries: An Analytical Perspective (BIS Papers No. 42).

    Google Scholar 

  • Bekaert, G., & Harvey, C. R. (1998). Capital Flows and the Behaviour of Emerging Market Equity Returns (NBER Working Paper No. 6669). Cambridge, MA: NBER.

    Google Scholar 

  • Bekaert, G., Harvey, C. R., & Lumsdaine, R. L. (1998). Dating the Integration of World Equity Markets (Working Paper 6724). Cambridge, MA: National Bureau of Economic Research.

    Google Scholar 

  • Bird, G., & Rajan, R. S. (2000). Restraining International Capital Movements: What Does It Mean? (CIES Policy Discussion Paper, No. 0014). University of Adelaide, Centre for International Economic Studies.

    Google Scholar 

  • Bumann, S., Hermes, N., & Lensink, R. (2013). Financial Liberalization and Economic Growth: A Meta-Analysis. Journal of International Money and Finance, 33, 255–281.

    Article  Google Scholar 

  • Bussiere, M., & Fratzscher, M. (2008). Financial Openness and Growth: Short Run Gain, Long Run Pain. Review of International Economics, 16(1), 69–95.

    Article  Google Scholar 

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

    Article  Google Scholar 

  • García-Herrero, A., & Wooldridge, P. (2007, September). Global and Regional Financial Integration: Progress in Emerging Markets. BIS Quarterly Review, 57–70.

    Google Scholar 

  • Gehrig, T. (1998, June). Cities and the Geography of Financial Centres (CEPR Discussion Papers, No. 1894).

    Google Scholar 

  • Giannetti, M., Guiso, L., Jappelli, T., Padula, M., & Pagano, M. (2002). Financial Market Integration, Corporate Financing and Economic Growth (European Commission Economic Papers No. 179). Brussels: European Commission.

    Google Scholar 

  • Gwartney, J., Lawson, R., & Hall, J. (2015). Economic Freedom of the World 2015 Annual Report. Vancouver: Fraser Institute.

    Google Scholar 

  • Henry, P. B. (2000). Do Stock Market Liberalizations Cause Investment Booms? Journal of Financial Economics, 58, 301–334.

    Article  Google Scholar 

  • International Monetary Fund. (2016, April). World Economic Outlook. Washington, DC: IMF.

    Google Scholar 

  • Kim, S. J. (2005). Information Leadership in the Advanced Asia-Pacific Stock Markets: Return, Volatility and Volume Information Spillovers from the US and Japan. Journal of the Japanese and International Economies, 19(3), 338–365.

    Article  Google Scholar 

  • Lane, P. R., & Milesi-Ferretti, G. M. (2007). International Financial Integration (IMF Working Paper No. WP/03/86). Washington, DC: IMF.

    Google Scholar 

  • Malik, S. (2015). Financial-Integration Thresholds for Consumption Risk-sharing. International Review of Economics and Finance, 38, 73–93.

    Article  Google Scholar 

  • Manning, N. (2002). Common Trends and Convergences? South East Asian Equity Markets, 1988–1999. Journal of International Money and Finance, 21, 183–202.

    Article  Google Scholar 

  • Mukherjee, P., & Bose, S. (2008). Does the Stock Market in India Move with Asia?: A Multivariate Cointegration-Vector Autoregression Approach. Emerging Markets Finance and Trade, 44(5), 5–22.

    Article  Google Scholar 

  • Nath, G. C., & Patel, B. (2003). Global Equity Markets: A Study of Cointegration. Journal of the Academy of Business and Economics, 1(1), 197.

    Google Scholar 

  • Obstfeld, M. (1994). Risk-taking, Global Diversification and Growth. American Economic Review, 84, 1310–1329.

    Google Scholar 

  • OECD. (2015). Economic Outlook for Southeast Asia, China and India 2016. France: OECD Development Centre.

    Google Scholar 

  • Perera, A., & Wickramanayake, J. (2012). Financial Integration in Selected South Asian Countries. South Asian Journal of Global Business Research, 1(2), 210–237.

    Article  Google Scholar 

  • Quinn, D. P., & Toyoda, A. M. (2008). Does Capital Account Liberalization Lead to Growth? The Review of Financial Studies, 21(3), 1403–1449.

    Article  Google Scholar 

  • Rodrik, D. (1998). Who Needs Capital-Account Convertibility? In S. Fischer (Ed.), Should the IMF Pursue Capital Account Convertibility? (Essays in International Finance No. 207). Princeton: International Finance Section, Department of Economics, Princeton University.

    Google Scholar 

  • Sally, R. (2010). Regional Economic Integration in Asia: The Track Record and Prospects (ECIPE Occasional Paper No. 2/2010). Brussels: European Centre for International Political Economy.

    Google Scholar 

  • UNCTAD. (2016). World Investment Report.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. International Management Institute Kolkata, Kolkata, India

    Paramita Mukherjee

Authors
  1. Paramita Mukherjee
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. International Management Institute, Kolkata, India

    Arindam Banik

  2. Ritsumeikan Asia Pacific University, Beppu, Oita, Japan

    Munim Kumar Barai

  3. Ritsumeikan Asia Pacific University, Beppu, Oita, Japan

    Yasushi Suzuki

Rights and permissions

Reprints and permissions

Copyright information

© 2017 The Author(s)

About this chapter

Cite this chapter

Mukherjee, P. (2017). Is India Key to Asian Financial Integration?. In: Banik, A., Barai, M., Suzuki, Y. (eds) Towards A Common Future. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-10-5592-8_5

Download citation

  • DOI: https://doi.org/10.1007/978-981-10-5592-8_5

  • Published:

  • Publisher Name: Palgrave Macmillan, Singapore

  • Print ISBN: 978-981-10-5591-1

  • Online ISBN: 978-981-10-5592-8

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation