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An Empirical Examination of Capital Mobility in East Asia Emerging Markets

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  • Ying Huang
  • Feng Guo

Abstract

This paper examines the evidence on saving-investment correlations and the covered interest parity conditions to gauge the degree of capital mobility in eight East Asia emerging markets. It is found that Hong Kong and Singapore have fairly mobile capital markets while other countries exhibit financial openness only to a certain extent. The results also indicate that financial integration has been broadly enhanced among these markets following their liberalizations. However, except for Hong Kong, the degree of capital mobility in all markets has not yet returned to the level before the Asian crisis.

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  • Ying Huang & Feng Guo, 2006. "An Empirical Examination of Capital Mobility in East Asia Emerging Markets," Global Economic Review, Taylor & Francis Journals, vol. 35(1), pages 97-111.
    • Handle: RePEc:taf:glecrv:v:35:y:2006:i:1:p:97-111
    DOI: 10.1080/12265080500537458
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    References listed on IDEAS

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    Cited by:

    1. Natalya Ketenci, 2016. "The Feldstein–Horioka Puzzle and Structural Breaks: Evidence from the Largest Countries of Asia," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 10(3), pages 337-354, August.
    2. Kim, Heeho, 2011. "The risk adjusted uncovered equity parity," Journal of International Money and Finance, Elsevier, vol. 30(7), pages 1491-1505.
    3. Ketenci, Natalya, 2014. "The Feldstein –Horioka Puzzle and structural breaks: Evidence from the largest countries of Asia," MPRA Paper 54660, University Library of Munich, Germany.

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