Financial Liberalization and Stock Markets Integration for Asean-5 Countries

Financial Liberalization and Stock Markets Integration for Asean-5 Countries

This paper examines the relationship of financial liberalization and stock markets integration among ASEAN-5 (Note 1) stock markets: Indonesia, Malaysia, the Philippines, Singapore and Thailand. Three sample periods are covered based on the progress of financial liberalization. By using Johansen and Juselius multivariate cointegration procedures, Granger-causality tests and variances decomposit...

The Impact of Subsequent Stock Market Liberalization on the Integration of Stock Markets in ASEAN-4 + South Korea

To strengthen the capital market, there is a need to integrate the capital markets within the region by removing legal or informal restriction, specifically, stock market liberalization. Thus the paper is to investigate the effects of the subsequent stock market liberalization on stock market integration in 4 ASEAN countries (Malaysia, Indonesia, Thailand, Singapore) and Korea from 1997 to 2007...

Optimal Financial Markets Liberalization

This paper examines the optimal financial markets liberalization policy for a large country in a two-country general equilibrium production economy. In our model, household’s portfolio choice is modeled separately from firm’s investment decision and financial markets play an important role in the allocation of capital between production technologies. We find that the type of production technolo...

A Difference-In-Differences (DID) Analysis Of Financial Integration And International Trade In ASEAN+5

Optimal Liberalization of Financial Markets

This paper shows that the type of production technology, specifically whether it exhibits decreasing returns to scale in capital, is an important factor in evaluating the welfare gain from liberalizing financial markets, and hence the optimal financial structure for a country. As financial markets become completely liberalized, countries gain from a better capital allocation as a result of impr...