IDEAS home Printed from https://ideas.repec.org/a/sae/emeeco/v1y2009i1p87-122.html
   My bibliography  Save this article

Regional Integration of Capital Markets in ASEAN

Author

Listed:
  • Jaseem Ahmed
  • V. Sundararajan

Abstract

Efforts to promote regional economic cooperation and integration in South-East Asia and particularly in the Association of South-East Asian Nations (ASEAN) countries, have received greatly increased emphasis in official circles since the Asian crisis of 1997–98. South-East Asian financial integration with the world is well advanced by various measures; but they appear to have become more integrated with countries outside the region than within the region. Regional integration of private capital markets have shown limited progress. This was caused by several factors, including: (i) the large differences in the levels of market development; (ii) the lack of convergence of regulations and rules governing markets; (iii) differences in the extent to which the measures, to enable and benefit from greater regional integration, are incorporated into their national development plans; (iv) prevalence of exchange restrictions and intra-regional exchange stability considerations that hinder integration; and finally (v) the missing markets, in derivatives or in key regionally-focused products, hinder both domestic market development and regional integration. These considerations call for a comprehensive strategy which includes liberalising capital account and portfolio restrictions, implementing a process of mutual recognition of various cross-border transactions in products and services, supported by harmonisation of relevant rules and regulations. This also includes strengthening and coordinating exchange governance and market surveillance arrangements, initiating work on an ‘ASEAN Equity Network’ to link equity markets. This facilitates implementation of the ongoing bond market integration initiatives, promoting new products and intermediaries to develop ASEAN as an asset class. It refines plans for domestic capital markets development to incorporate regional integration objectives and establishes stronger coordination arrangements at the ASEAN level to support the initiatives in the above areas.

Suggested Citation

  • Jaseem Ahmed & V. Sundararajan, 2009. "Regional Integration of Capital Markets in ASEAN," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 1(1), pages 87-122, January.
    • Handle: RePEc:sae:emeeco:v:1:y:2009:i:1:p:87-122
    DOI: 10.1177/097491010800100106
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/097491010800100106
    Download Restriction: no
    File URL: https://libkey.io/10.1177/097491010800100106?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Andrew Sheng, 2006. "Building National and Regional Financial Markets: The East Asian Experience," Papers Presented at Global Meetings of the Emerging Markets Forum 2006regfinmkt, Emerging Markets Forum.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Pomerleano, 2011. "Developing Regional Financial Markets – the Case of East Asia," Chapters, in: Ulrich Volz (ed.), Regional Integration, Economic Development and Global Governance, chapter 9, Edward Elgar Publishing.
    2. Pasadilla, Gloria, 2008. "Financial Services Integration in East Asia: Lessons from the European Union," Discussion Papers DP 2008-31, Philippine Institute for Development Studies.
    3. Andrew Sheng, 2007. "East Asian Capital Markets Integration - Steps Beyond ABMI," EABER Working Papers 21855, East Asian Bureau of Economic Research.
    4. Sheng, Andrew & Kwek, Kian-Teng & Cho, Cho-Wai, 2009. "A tale of Asian exchange rate management: Romance of the three currencies," Journal of Asian Economics, Elsevier, vol. 20(5), pages 519-535, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:emeeco:v:1:y:2009:i:1:p:87-122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.emergingmarketsforum.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.