Growth of Asian Pension Assets : Implications for Financial and Capital Markets
AbstractPension assets have seen rapid growth world-wide over the past decades, although they suffered large losses during the global financial crisis of 2007â€“2008. Such growth is notably due to both structural and parametric pension reforms since the 1980s. In the Asian region too, the pension market has steadily expanded. This paper seeks to identify the impact of Asian pension funds on selected key transmission mechanisms from pension reform to financial development. Utilizing a panel error correction model, we found a statistical relationship between pension asset growth and development of financial and capital markets. The main policy implication is that governments in Asia should continue and/or strengthen pension reforms towards more pre-funding of future liabilities, since it brings beneficial impacts on the financial market.
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Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Macroeconomics Working Papers with number 23317.
Date of creation: May 2012
Date of revision:
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Asian pension assets; financial and capital markets; Asia; pension reforms; financial development;
Find related papers by JEL classification:
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-08-23 (All new papers)
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