Economic and Financial Interconnections and Income Growth Convergence in Asia: A Real-Financial Nexus?

Tony Cavoli, Sasidaran Gopalan

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This article empirically examines economic and financial linkages for emerging Asian economies for the period 2000 to 2014. Taking a multivariate approach to measuring integration, we examine a number of measures of economic interconnections to investigate whether (and which) individual dimensions of these connections might drive economic integration. We also provide an empirical assessment of whether and how real and financial linkages drive income growth convergence. Our article finds two important results: First, interconnections between the ASEAN-5 countries are driven primarily by financial linkages while those for the larger countries in the region are driven by real linkages. Second, greater interconnections though prices tend to lead to greater income growth convergence.

Original languageEnglish
Pages (from-to)2672-2685
Number of pages14
JournalEmerging Markets Finance and Trade
Volume53
Issue number12
DOIs
Publication statusPublished - Dec 2 2017
Externally publishedYes

Keywords

  • ASEAN
  • economic and financial interconnections
  • income growth convergence

ASJC Scopus subject areas

  • Finance
  • Economics, Econometrics and Finance(all)

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