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Bond market development and integration in ASEAN


  • Michael G. Plummer

    (Johns Hopkins University, SAIS Bologna Center, Italy)

  • Reid W. Click

    (George Washington University, USA)


The Association of Southeast Asian Nations (ASEAN) has focused increasingly on financial integration as part of its economic-deepening agenda. This paper considers the challenges and opportunities associated with the creation of an ASEAN bond market. In addition to surveying the status quo of fixed-income markets in the context of capital market development and integration in the region, the paper gauges the benefits that might be generated through, inter alia, financial market diversification and interest rate convergence. It also addresses approaches to the inevitable liquidity problem, such as via the creation of an ASEAN currency basket. Copyright © 2005 John Wiley & Sons, Ltd.

Suggested Citation

  • Michael G. Plummer & Reid W. Click, 2005. "Bond market development and integration in ASEAN," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 10(2), pages 133-142.
  • Handle: RePEc:ijf:ijfiec:v:10:y:2005:i:2:p:133-142 DOI: 10.1002/ijfe.268

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    References listed on IDEAS

    1. Haruhiko Kuroda & Masahiro Kawai, 2002. "Strengthening Regional Financial Cooperation in East Asia," Asia Pacific Economic Papers 332, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    2. Bayoumi, Tamim & Ostry, Jonathan D, 1997. "Macroeconomic Shocks and Trade Flows within Sub-Saharan Africa: Implications for Optimum Currency Arrangements," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(3), pages 412-444, October.
    3. Masahiro Kawai & Shinji Takagi, 2005. "Strategy for a Regional Exchange Rate Arrangement in East Asia: Analysis, Review and Proposal," Global Economic Review, Taylor & Francis Journals, vol. 34(1), pages 21-64.
    4. Honohan, Patrick, 1990. "Monetary cooperation in the CFA zone," Policy Research Working Paper Series 389, The World Bank.
    5. Rother, Philipp C, 1999. "Money Demand in the West African Economic and Monetary Union--The Problems of Aggregation," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 8(3), pages 422-447, October.
    6. Michel Galy & Michael T. Hadjimichael, 1997. "The CFA Franc Zone and the EMU," IMF Working Papers 97/156, International Monetary Fund.
    7. Célestin Monga, 1997. "A Currency Reform Index for Western and Central Africa," The World Economy, Wiley Blackwell, vol. 20(1), pages 103-126, January.
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    Cited by:

    1. Michael G. Plummer & Reid W. Click, 2009. "The ASEAN Economic Community and the European Experience," Chapters,in: Towards Monetary and Financial Integration in East Asia, chapter 1 Edward Elgar Publishing.
    2. Ojah, Kalu & Pillay, Kishan, 2009. "Debt markets and corporate debt structure in an emerging market: The South African example," Economic Modelling, Elsevier, vol. 26(6), pages 1215-1227, November.
    3. Duo Qin & Marie Anne Cagas & Geoffrey Ducanes & Nedelyn Magtibay-Ramos & Pilipinas Quising, "undated". "Measuring Regional Market Integration by Dynamic Factor Error Correction Model (DF-ECM) Approach: The Case of Developing Asia," EcoMod2007 23900071, EcoMod.
    4. Takashi Matsuki, 2016. "Linear and nonlinear comovement in Southeast Asian local currency bond markets: a stepwise multiple testing approach," Empirical Economics, Springer, vol. 51(2), pages 591-619, September.
    5. Bhattacharyay, Biswa Nath, 2013. "Determinants of bond market development in Asia," Journal of Asian Economics, Elsevier, vol. 24(C), pages 124-137.
    6. Abdul Karim, Bakri & Abdul Majid, M. Shabri & Abdul Karim, Samsul Ariffin, 2009. "Financial Integration between Indonesia and Its Major Trading Partners," MPRA Paper 17277, University Library of Munich, Germany.
    7. repec:eee:reveco:v:51:y:2017:i:c:p:193-213 is not listed on IDEAS
    8. Clifford R Dammers & Robert N McCauley, 2006. "Basket weaving: the euromarket experience with basket currency bonds," BIS Quarterly Review, Bank for International Settlements, March.
    9. Qin, Duo & Cagas, Marie Anne & Ducanes, Geoffrey & Magtibay-Ramos, Nedelyn & Quising, Pilipinas F., 2007. "Measuring Regional Market Integration in Developing Asia: a Dynamic Factor Error Correction Model (DF-ECM) Approach," Working Papers on Regional Economic Integration 8, Asian Development Bank.
    10. Bakri Abdul Karim & M. Shabri Abd. Majid, 2010. "Does trade matter for stock market integration?," Studies in Economics and Finance, Emerald Group Publishing, vol. 27(1), pages 47-66, March.
    11. Sánchez, Marcelo, 2005. "Is time ripe for a currency union in emerging East Asia? The role of monetary stabilisation," Working Paper Series 567, European Central Bank.
    12. Johansson, Anders C., 2008. "Interdependencies among Asian bond markets," Journal of Asian Economics, Elsevier, vol. 19(2), pages 101-116, April.
    13. Watanabe, Shingo & Ogura, Masanobu, 2010. "How far apart are the two ACUs from each other? Asian currency unit and Asian currency union," Emerging Markets Review, Elsevier, vol. 11(2), pages 152-172, June.
    14. Plummer, Michael G., 2006. "ASEAN-EU economic relationship: Integration and lessons for the ASEAN economic community," Journal of Asian Economics, Elsevier, vol. 17(3), pages 427-447, June.
    15. Peter B. Kenen & Ellen E. Meade, 2006. "Monetary integration in East Asia," Proceedings, Federal Reserve Bank of San Francisco, issue Jun.

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