The Dynamics of Asian Financial Integration The book assesses financial integration in emerging East Asia at both regional and global levels. It studies the factors driving the progress of regional financial integration in relation to financial globalization and identifies the relevant policy challenges facing emerging market economies in the region. Chapters look into three broad aspects of regional and global financial market integration: (i) measurement of regional and global financial integration; (ii) understanding the dynamics of regional financial integration versus global financial integration; and (iii) welfare implications from regional financial market integration amid financial globalization. Against this context, academics, policy makers, and other readers will appreciate the rigorous research contribution provided by this book. Michael B. Devereux is Professor at the Department of Economics, University of British Columbia in Vancouver, Canada. Professor Devereux is the associate editor of several academic journals, including the International Journal of Central Banking, Journal of Macroeconomics, and International Tax and Public Finance. Philip R. Lane is Professor of International Macroeconomics at Trinity College Dublin. Presently, he is also a research fellow at the Centre for Economic Policy Research and the Kiel Institute of World Economics. Cyn-Young Park is Principal Economist in the Office of Regional Economic Integration (OREI) at the Asian Development Bank (ADB). In her current capacity, she is responsible for the overall macroeconomic and financial market research in OREI. Shang-Jin Wei is the N.T. Wang Professor of Chinese Business and Economy, Professor of Finance and Economics (Business School), and Professor of International and Public Affairs (School of International and Public Affairs) at Columbia University. He is also the director of The Jerome A. Chazen Institute of International Business and the Working Group on the Chinese Economy at the National Bureau of Economics Research. [11:53 17/12/2010 5601-Devereux-Frontmatter.tex] Job No: 5601Devereux: The Dynamics of Asian Financial IntegrationPage: i 1–xxvi Routledge studies in the modern world economy 1 Interest Rates and Budget 7 Competition Policy in the Global Deficits Economy A study of the advanced economies Modalities for co-operation Kanhaya L Gupta and Bakhtiar Edited by Leonard Waverman, Moazzami William S. Comanor and Akira Goto 2 World Trade after the Uruguay Round 8 Working in the Macro Economy Prospects and policy options for A study of the US labor market the twenty-first century Martin F. J. Prachowny Edited by Harald Sander and 9 How Does Privatization Work? András Inotai Edited by Anthony Bennett 3 The Flow Analysis of Labour 10 The Economics and Politics of Markets International Trade Edited by Ronald Schettkat Freedom and trade: volume II Edited by Gary Cook 4 Inflation and Unemployment Contributions to a new macro- 11 The Legal and Moral Aspects of economic approach International Trade Edited by Alvaro Cencini and Freedom and trade: volume III Mauro Baranzini Edited by Asif Qureshi, Hillel Steiner and Geraint Parry 5 Macroeconomic Dimensions of Public Finance 12 Capital Markets and Corporate Essays in honour of Vito Tanzi Governance in Japan, Germany Edited by Mario I. Blejer and and the United States Teresa M. Ter-Minassian Organizational response to market inefficiencies 6 Fiscal Policy and Economic Helmut M. Dietl Reforms Essays in honour of Vito Tanzi 13 Competition and Trade Policies Edited by Mario I. Blejer and Coherence or conflict Teresa M. Ter-Minassian Edited by Einar Hope [11:53 17/12/2010 5601-Devereux-Frontmatter.tex] Job No: 5601Devereux:The Dynamics of Asian Financial IntegrationPage: ii 1–xxvi 14 Rice 23 The Employment Impact of The primary commodity Innovation A. J. H. Latham Evidence and policy Edited by Marco Vivarelli and 15 Trade, Theory and Mario Pianta Econometrics Essays in honour of John S. 24 International Health Care Chipman Reform Edited by James C. Moore, A legal, economic and political Raymond Riezman, and James R. analysis Melvin Colleen Flood 16 Who Benefits from 25 Competition Policy Analysis Privatisation? Edited by Einar Hope Edited by Moazzem Hossain and Justin Malbon 26 Culture and Enterprise The development, representation 17 Towards a Fair Global Labour and morality of business Market Don Lavoie and Emily Avoiding the new slave trade Chamlee-Wright Ozay Mehmet, Errol Mendes and Robert Sinding 27 Global Financial Crises and Reforms 18 Models of Futures Markets Cases and caveats Edited by Barry Goss B. N. Ghosh 19 Venture Capital Investment 28 Geography of Production and An agency analysis of UK Economic Integration practice Miroslav N. Jovanovi´c Gavin C. Reid 29 Technology, Trade and Growth 20 Macroeconomic Forecasting in OECD Countries A sociological appraisal Does specialisation matter? Robert Evans Valentina Meliciani 21 Multimedia and Regional 30 Post-Industrial Labour Markets Economic Restructuring Profiles of North America and Edited by Hans-Joachim Braczyk, Scandinavia Gerhard Fuchs and Hans-Georg Edited by Thomas P. Boje and Wolf Bengt Furaker 22 The New Industrial Geography 31 Capital Flows without Crisis Regions, regulation and Reconciling capital mobility and institutions economic stability Edited by Trevor J. Barnes and Edited by Dipak Dasgupta, Meric S. Gertler Marc Uzan, and Dominic Wilson [11:53 17/12/2010 5601-Devereux-Frontmatter.tex] Job No: 5601Devereux:The Dynamics of Asian Financial IntegrationPage: iii 1–xxvi 32 International Trade and 42 Tax Systems and Tax Reforms National Welfare in Europe Murray C. Kemp Edited by Luigi Bernardi and Paola Profeta 33 Global Trading Systems at Crossroads 43 Trade Liberalization and APEC A post-Seattle perspective Edited by Jiro Okamoto Dilip K. Das 44 Fiscal Deficits in the Pacific 34 The Economics and Region Management of Technological Edited by Akira Kohsaka Diversification 45 Financial Globalization and the Edited by John Cantwell, Alfonso Emerging Market Economies Gambardella and Ove Granstrand Dilip K. Das 35 Before and Beyond EMU 46 International Labor Mobility Historical lessons and future Unemployment and increasing prospects returns to scale Edited by Patrick Crowley Bharati Basu 36 Fiscal Decentralization 47 Good Governance in the Era of Ehtisham Ahmad and Vito Tanzi Global Neoliberalism Conflict and depolitization in 37 Regionalisation of Globalised Latin America, Eastern Europe, Innovation Asia and Africa Locations for advanced industrial Edited by Jolle Demmers, Alex E. development and disparities in Fernández Jilberto and Barbara participation Hogenboom Edited by Ulrich Hilpert 48 The International Trade System 38 Gold and the Modern World Alice Landau Economy Edited by MoonJoong Tcha 48 International Perspectives on Temporary Work and Workers 39 Global Economic Institutions Edited by John Burgess and Willem Molle Julia Connell 40 Global Governance and 50 Working Time and Workers’ Financial Crises Preferences in Industrialized Edited by Meghnad Desai and Countries Yahia Said Finding the balance Edited by Jon C. Messenger 41 Linking Local and Global Economies 51 Tax Systems and Tax Reforms in The ties that bind New EU Members Edited by Carlo Pietrobelli and Edited by Luigi Bernardi, Mark Arni Sverrisson Chandler, and Luca Gandullia [11:53 17/12/2010 5601-Devereux-Frontmatter.tex] Job No: 5601Devereux:The Dynamics of Asian Financial IntegrationPage: iv 1–xxvi 52 Globalization and the 61 Solving the Riddle of Nation State Globalization and Development The impact of the IMF and the Edited by Manuel Agosín, World Bank David Bloom, George Chapelier, Edited by Gustav Ranis, James and Jagdish Saigal Vreeland, and Stephen Kosak 62 Foreign Direct Investment and 53 Macroeconomic Policies and the World Economy Poverty Reduction Ashoka Mody Edited by Ashoka Mody and 63 The World Economy Catherine Pattillo A global analysis Horst Siebert 54 Regional Monetary Policy Carlos J. Rodríguez-Fuentez 64 Production Organizations in Japanese Economic Development 55 Trade and Migration in the Edited by Tetsuji Okazaki Modern World 65 The Economics of Language Carl Mosk International analyses 56 Globalisation and the Labour Edited by Barry R. Chiswick and Market Paul W. Miller Trade, technology and less-skilled 66 Street Entrepreneurs workers in Europe and the United People, place and politics in local States and global perspective Edited by Robert Anderton, Edited by John Cross and Paul Brenton and John Whalley Alfonso Morales 57 Financial Crises 67 Global Challenges and Local Socio-economic causes and Responses institutional context The East Asian experience Brenda Spotton Visano Edited by Jang-Sup Shin 58 Globalization and Self 68 Globalization and Regional Determination Integration Is the nation-state under siege? The origins, development and Edited by David R. Cameron, impact of the Single European Gustav Ranis, and Annalisa Zinn Aviation Market Alan Dobson 59 Developing Countries and 69 Russia Moves into the Global the Doha Development Round of Economy the WTO Breaking out Edited by Pitou van Dijck and John M. Letiche Gerrit Faber 70 The European Economy in an 60 Immigrant Enterprise in Europe American Mirror and the USA Barry Eichengreen, Michael Prodromos Panayiotopoulos Landesmann, and Dieter Stiefel [11:53 17/12/2010 5601-Devereux-Frontmatter.tex] Job No: 5601Devereux:The Dynamics of Asian Financial IntegrationPage: v 1–xxvi 71 Working Time Around the 79 The Indonesian Labour Market World Shafiq Dhanani, Iyanatul Islam, Trends in working hours, laws,