Financial Integration in ASEAN-5

Authors

Laura Grace Gabriella, Research Fellow, Department of Macroprudential Policy, Bank Indonesia.Follow
Revathy Suryanarayana, Research Associate, Indian School of Business, HyderabadFollow
Vania Esady, PhD student, Department of Economics, City, University of LondonFollow

Abstract

The financial integration in South East Asia has varied over time. This paper focuses on three periods: before, during, and after the global financial crisis in 2008. This paper finds that ASEAN-5 countries have indeed taken a step towards financial integration. While we do not observe any (cointegrating) long-run relationships between the ASEAN-5 countries, we find that there has been a significant increase in the volatility spillovers between them. This is particularly true in the recovery period following the global financial crisis.

Bahasa Abstract

Integrasi keuangan di Asia Tenggara telah mengalami perubahan dari waktu ke waktu. Penelitian ini berfokus pada tiga periode waktu, yaitu pada sebelum, saat, dan setelah Krisis Keuangan Global tahun 2008. Hasil penelitian ini menemukan bahwa negara ASEAN-5 memiliki kecenderungan kearah integrasi keuangan. Walaupun kami belum melihat adanya hubungan jangka panjang dari kelima negara tersebut, namun kami menemukan adanya peningkatan signifikan dari volatility spillover diantara mereka. Hal ini khususnya benar terjadi sepanjang periode pemulihan dari Krisis Keuangan Global.

Recommended Citation

Gabriella, Laura Grace; Suryanarayana, Revathy; and Esady, Vania (2016) "Financial Integration in ASEAN-5," Economics and Finance in Indonesia: Vol. 62: No. 1, Article 4.
DOI: 10.47291/efi.v62i1.522
Available at: https://scholarhub.ui.ac.id/efi/vol62/iss1/4