IDEAS home Printed from https://ideas.repec.org/p/phs/dpaper/199704.html
   My bibliography  Save this paper

A Note on Philippine Financial Openness

Author

Listed:
  • Jose Antonio Tan III
  • Cayetano Paderanga Jr.

    (School of Economics, University of the Philippines Diliman)

Abstract

In 1991, the Philippines launched a series of foreign exchange reforms which partially opened the capital account. These set of reforms, if completed, will result in the financial integration of the economy with the global financial markets, thus, would complete the sequence of economic liberalization and integration. This study examines the degree of financial integration of the Philippnes with the international economy. In particular, two questions are to be answered. First, how financially integrated is the Philippines with the rest of the world? And, second, how has foreign exchange liberalization contributed to Philippine financial openness? Philippine financial openness is examined using the gross capital flows ratio, the Feldstein-Horioka regressions and variations of test based on uncovered interest parity. While the results confirm the substantial increase in gross capital flows, evidence using investment-saving correlation and arbitrage tests suggest that the degree of financial openness is still low. The empirical evidence also suggests that capital account liberalization has not contributed much to financial integration.

Suggested Citation

  • Jose Antonio Tan III & Cayetano Paderanga Jr., 1997. "A Note on Philippine Financial Openness," UP School of Economics Discussion Papers 199704, University of the Philippines School of Economics.
    • Handle: RePEc:phs:dpaper:199704
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mapa, Dennis S. & Briones, Kristine Joy S., 2006. "Measuring the Common Component of Stock Market Fluctuations in the Asia-Pacific Region," MPRA Paper 21247, University Library of Munich, Germany.

    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:phs:dpaper:199704. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: RT Campos (email available below). General contact details of provider: https://edirc.repec.org/data/seupdph.html .

    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.