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 2007–2008. 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 Asian Development Bank Institute in its series ADBI Working Papers with number 360.
Length: 29 pages
Date of creation: 31 May 2012
Date of revision:
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More information through EDIRC
asia; pension systems; asian pension funds; pension reform;
Find related papers by JEL classification:
- C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
- 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
This paper has been announced in the following NEP Reports:
- NEP-AGE-2012-06-05 (Economics of Ageing)
- NEP-ALL-2012-06-05 (All new papers)
- NEP-SEA-2012-06-05 (South East Asia)
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