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Financial Integration in ASEAN: Practice Analysis

Author

Listed:
  • Olga V. Bogacheva

    (Financial Research Institute, Moscow 127006, Russia)

  • Ivan D. Rakov

    (Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences, Moscow 117997, Russia)

  • Oleg V. Smorodinov

    (Financial Research Institute, Moscow 127006, Russia)

Abstract

The article discusses the practical aspects of integration process during formation of ASEAN Economic Community (2007–2015). The focal point is the analysis of the following directions of financial integration: financial markets liberalization, increase in volumes of direct and portfolio foreign investments, development of stock market cross-border segment. Moreover, the article covers issues related to minimization of threats of unstable national budget systems in ASEAN countries. Analysis is conducted within the context of the concept of financial integration “indirect impact” on economic growth and budgetary systems’ stability, which was explored in detail in the previous article (Financial Journal, 2016, No 5). The authors come to conclusion that generally successful development of financial integration during the period of ASEAN Economic Community formation became possible due to the meeting of certain “threshold conditions”, which characterize levels of financial sector development, foreign trade, public and market institutions, as well as public finance quality.

Suggested Citation

  • Olga V. Bogacheva & Ivan D. Rakov & Oleg V. Smorodinov, 2017. "Financial Integration in ASEAN: Practice Analysis," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 2, pages 115-128, April.
    • Handle: RePEc:fru:finjrn:170210:p:115-128
    as

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    References listed on IDEAS

    as
    1. Olga V. Bogacheva & Oleg V. Smorodinov, 2016. "Financial Integration in ASEAN: Theoretical Aspect," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 63-74, October.
    2. Donghyun Park & Kwanho Shin, 2016. "Financial Integration in Asset and Liability Holdings in East Asia," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(3), pages 539-556, March.
    3. Ayhan Kose, M. & Prasad, Eswar S. & Taylor, Ashley D., 2011. "Thresholds in the process of international financial integration," Journal of International Money and Finance, Elsevier, vol. 30(1), pages 147-179, February.
    4. Mr. Gerard J Almekinders & Mr. Alex Mourmouras & Ms. Jianping Zhou & Satoshi Fukuda & Yong Sarah Zhou, 2015. "ASEAN Financial Integration," IMF Working Papers 2015/034, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    ASEAN Economic Community; financial integration; globalization; direct and portfolio foreign investments; banking sector liberalization; stability of national budgetary system; threshold conditions;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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