The nexus between financial integration and real economy: Solow-growth model concept
This paper aims to investigate the nexus between financial integration and the real economy in ASEAN + 3 economies based on the concept of Solow-Growth Model. The equity indices as a proxy for financial markets are collected from each ASEAN + 3 members and are segmented between two periods; before a...
| Main Authors: | , |
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| Format: | Article |
| Language: | English English English |
| Published: |
Elsevier Ltd
2017
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/63091/ http://irep.iium.edu.my/63091/ http://irep.iium.edu.my/63091/ http://irep.iium.edu.my/63091/1/63091_The%20nexus%20between%20financial%20integration_article.pdf http://irep.iium.edu.my/63091/2/63091_The%20nexus%20between%20financial%20integration_scopus.pdf http://irep.iium.edu.my/63091/13/63091_The%20nexus%20between%20financial%20integration%20and%20real%20economy_scopus.pdf |
| Summary: | This paper aims to investigate the nexus between financial integration and the real economy in ASEAN + 3 economies based on the concept of Solow-Growth Model. The equity indices as a proxy for financial markets are collected from each ASEAN + 3 members and are segmented between two periods; before and after the financial cooperation agreement period. The finding presents several outcomes; 1) no cointegration nexus is found in the system during the pre-agreement periods; 2) the markets are found cointegrated during the post-agreement period, 3) financial integration is found to influence the real sectors of ASEAN + 3 economies. Finally, this study offers policy implications to improve financial integration for stabilizing the real economy. |
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