Financial sector convergence in the ASEAN economies

The Association of South East Asian Nation (ASEAN) is one example of regionalism in the Asian region. The purpose of this study is to address the question whether its formation has been successful or remains heterogeneous. By applying annual financial data for the period 1999 to 2009, on average, ou...

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Bibliographic Details
Main Authors: Ibrahim, Juliana, Habibullah, Muzafar Shah, Radam, Alias, Kaliappan, Shivee Ranjanee
Format: Conference or Workshop Item
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2012
Online Access:http://psasir.upm.edu.my/id/eprint/51263/
http://psasir.upm.edu.my/id/eprint/51263/1/12-17.pdf
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Summary:The Association of South East Asian Nation (ASEAN) is one example of regionalism in the Asian region. The purpose of this study is to address the question whether its formation has been successful or remains heterogeneous. By applying annual financial data for the period 1999 to 2009, on average, our panel unit root tests result suggests that the ASEAN countries financial depth (financial intermediation) are catching-up convergence towards their average and benchmark (Singapore) levels. In this respect, the government of the ASEAN countries are expected to continue with their initiatives in promoting the financial integration towards achieving a stable economic environment for investment and other productive economic activities in Asia.