Linkages between Real and Financial Aspects of Economic Integration in Asia

Lead Researcher: Professor Christopher Findlay

The extent of financial integration of the economies of the region and its relationship with integration of the real side of these economies is the question of interest in this project. Our motivation is to understand the contribution of both forms of integration to growth and to welfare.

Behind our research question is an interest in a 'grand trade off', concern about which has been heightened since the global financial crisis. This is balance between financial integration and the benefits it confers on the one hand and the transmission of shocks from the rest of the world and associated threats to financial stability on the other. There is an interest in the direct channels of transmission of such shocks but also the indirect effects, for example, the ways in which financial integration might intensify the direct effects of the transmissions of shocks on the real side of these economies.

Papers in this project explored these questions by examining both macroeconomic indicators and also by reviewing the microeconomics of the channels of transmission of shocks and the processes of integration.

This project is funded by ERIA.

Research outputs will be made available in this page.