Financial Integration in East Asia and Pacific: Regional and Interregional Linkages
An examination of investment types shows the lack of regional financial connectivity occurs in equity, bonds and bank syndicated loans
Abstract
During the last two decades, economies in East Asia and Pacific have been integrating internationally through trade and financial investments. One trend is puzzling. Whereas most of the trade integration has been within the region, most of the financial integration has been with countries outside the region. However, a closer examination of investment types shows that the relative lack of regional financial connectivity occurs mostly in equity, bonds, and bank syndicated loans (in so-called arm’s length investments). The region is much more connected through foreign direct investment (FDI) (through both mergers and acquisitions and greenfield investments).
This work is part of the “Finance for poverty reduction and shared prosperity’ project
Citation
Llovet Montanes, Ruth; Schmukler, Sergio L.. 2018. Financial integration in East Asia and Pacific : regional and interregional linkages (English). Research & Policy Briefs; no. 15. Washington, D.C. : World Bank Group.
Links
Financial Integration in East Asia and Pacific: Regional and Interregional Linkages