Financial Integration in Asia: Estimating the Risk-Sharing Gains for Australia and Other Nations

Author/Editor:

Benoît Mercereau

Publication Date:

December 1, 2006

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Holding foreign assets reduces the volatility of a country's income by allowing countries to share risk. Yet, financial integration is limited in Asia. This paper estimates how much Australia and other countries in the Asia-Pacific region would gain from greater financial integration. The results suggest that these welfare gains are large, which argues in favor of a progressive capital account liberalization across the region.

Series:

Working Paper No. 2006/267

Subject:

Capital account Consumption Financial integration Foreign assets Stocks

English

Publication Date:

December 1, 2006

ISBN/ISSN:

9781451865271/1018-5941

Stock No:

WPIEA2006267

Pages:

20

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