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Can an Asia Pacific Community, similar to the European Community, emerge?

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  • Moshirian, Fariborz

Abstract

The purpose of this paper is to analyse whether the Asia Pacific region could form a union similar to the one now established in Europe. To this end, it analyses some of the major challenge faced by the US prior to its union in the 19th century and the way countries such as France and Germany contributed to the formation of the EU, despite their past animosity. The paper proposed a two tier system for the emergence of a union in the Asia Pacific region in which all countries could become part of a regional framework for regional security and free trade and some of the more advanced countries in the region could start the process of financial integration and invite other member countries to join them over time. The paper argues that in the 2st century, unlike the claim of the "currency optimum theory," there is no need for labour mobility amongst Asian countries for the formation of a union in this region and hence Australia should not expect millions of workers from China to migrate there. The paper argues that the role of Japan and China in the process of regional integration has been underestimated, due to the claim that the former is a monoculture and the latter is too nationalistic. The paper highlights how diversity in the region could be seen as a strength in the Asia Pacific region. It also shows how the process of globalisation has already overcome differences in culture, religion and race which used to be stumbling blocks for more regional or global integration. The paper argues that a union in the Asia Pacific region would reduce "home bias" for international capital flows and hence there would be significant financial transformation of countries in this region.

Suggested Citation

  • Moshirian, Fariborz, 2009. "Can an Asia Pacific Community, similar to the European Community, emerge?," Journal of Banking & Finance, Elsevier, vol. 33(1), pages 2-8, January.
  • Handle: RePEc:eee:jbfina:v:33:y:2009:i:1:p:2-8
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    References listed on IDEAS

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    1. Moshirian, Fariborz, 2008. "Globalisation, growth and institutions," Journal of Banking & Finance, Elsevier, vol. 32(4), pages 472-479, April.
    2. Pierfederico Asdrubali & Bent E. Sørensen & Oved Yosha, 1996. "Channels of Interstate Risk Sharing: United States 1963–1990," The Quarterly Journal of Economics, Oxford University Press, vol. 111(4), pages 1081-1110.
    3. Cappiello, Lorenzo & Gérard, Bruno & Kadareja, Arjan & Manganelli, Simone, 2006. "Financial integration of new EU Member States," Working Paper Series 683, European Central Bank.
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    Citations

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    Cited by:

    1. Soedarmono, Wahyoe & Machrouh, Fouad & Tarazi, Amine, 2013. "Bank competition, crisis and risk taking: Evidence from emerging markets in Asia," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 23(C), pages 196-221.
    2. Soedarmono, Wahyoe & Machrouh, Fouad & Tarazi, Amine, 2011. "Bank market power, economic growth and financial stability: Evidence from Asian banks," Journal of Asian Economics, Elsevier, vol. 22(6), pages 460-470.
    3. Christiansen, Charlotte & Ranaldo, Angelo, 2009. "Extreme coexceedances in new EU member states' stock markets," Journal of Banking & Finance, Elsevier, vol. 33(6), pages 1048-1057, June.
    4. Moshirian, Fariborz, 2011. "The global financial crisis and the evolution of markets, institutions and regulation," Journal of Banking & Finance, Elsevier, vol. 35(3), pages 502-511, March.
    5. Anders Johansson, 2010. "China's financial market integration with the world," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 8(3), pages 293-314.
    6. Qin, Duo & Tan, Tao, 2009. "How much intraregional exchange rate variability could a currency union remove? The case of ASEAN+3," Journal of Banking & Finance, Elsevier, vol. 33(10), pages 1793-1803, October.
    7. Aggarwal, Raj & Muckley, Cal B., 2010. "Assessing co-ordinated Asian exchange rate regimes: Proposal for a possible move towards a common currency," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 20(2), pages 149-165, April.
    8. Wahyoe Soedarmono & Romora Edward Sitorus & Amine Tarazi, 2015. "Bank charter value, systemic risk and credit reporting systems: Evidence from the Asia-Pacific region," Working Papers hal-01174111, HAL.

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