Financial integration of East Asian economies: evidence from real interest parity
In this article, we investigate the financial linkages between the East Asian economies with Japan and the United States. We test for long-run Real Interest-rate Parity (RIP) using an array of panel-data techniques, including recent techniques developed by Breuer et al. (2002) and Carrion-i-Silvestr...
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my.unimas.ir.71592023-06-14T03:15:18Z http://ir.unimas.my/id/eprint/7159/ Financial integration of East Asian economies: evidence from real interest parity Evan, Lau Ahmad Zubaidi, Baharumshah Chan, Tze Haw A Mansur, M. Masih HB Economic Theory HG Finance In this article, we investigate the financial linkages between the East Asian economies with Japan and the United States. We test for long-run Real Interest-rate Parity (RIP) using an array of panel-data techniques, including recent techniques developed by Breuer et al. (2002) and Carrion-i-Silvestre et al. (2005). This study offers two important results: first, the failure to account for structural breaks in the industrialized countries and Asian emerging economies is likely to provide evidence of nonstationary series that are stationary. Second, we found strong evidence that the parity condition holds in all the Asian countries. The failure of earlier studies to confirm mean reversion of Real Interest-rate Differential (RID) may reflect the choice of estimation/testing procedure rather than any inherent deficiency in the RIP. Routledge 2011 Article PeerReviewed text en http://ir.unimas.my/id/eprint/7159/1/Financial%20integration%20of%20East%20Asian%20economies.pdf Evan, Lau and Ahmad Zubaidi, Baharumshah and Chan, Tze Haw and A Mansur, M. Masih (2011) Financial integration of East Asian economies: evidence from real interest parity. Applied Economics, 43 (16). pp. 1979-1990. ISSN 1466–4283 http://www.tandfonline.com/doi/pdf/10.1080/00036840902902243 DOI: 10.1080/00036840902902243 |
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HB Economic Theory HG Finance Evan, Lau Ahmad Zubaidi, Baharumshah Chan, Tze Haw A Mansur, M. Masih Financial integration of East Asian economies: evidence from real interest parity |
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In this article, we investigate the financial linkages between the East Asian economies with Japan and the United States. We test for long-run Real Interest-rate Parity (RIP) using an array of panel-data techniques, including recent techniques developed by Breuer et al. (2002) and Carrion-i-Silvestre et al. (2005). This study offers two important results: first, the failure to account for structural breaks in the industrialized countries and Asian emerging economies is likely to provide evidence of nonstationary series that are stationary. Second, we found strong evidence that the parity condition holds in all the Asian countries. The failure of earlier studies to confirm mean reversion of Real Interest-rate Differential (RID) may reflect the choice of estimation/testing procedure rather than any inherent deficiency in the RIP. |
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Article |
author |
Evan, Lau Ahmad Zubaidi, Baharumshah Chan, Tze Haw A Mansur, M. Masih |
author_facet |
Evan, Lau Ahmad Zubaidi, Baharumshah Chan, Tze Haw A Mansur, M. Masih |
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Evan, Lau |
title |
Financial integration of East Asian economies: evidence from real interest parity |
title_short |
Financial integration of East Asian economies: evidence from real interest parity |
title_full |
Financial integration of East Asian economies: evidence from real interest parity |
title_fullStr |
Financial integration of East Asian economies: evidence from real interest parity |
title_full_unstemmed |
Financial integration of East Asian economies: evidence from real interest parity |
title_sort |
financial integration of east asian economies: evidence from real interest parity |
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Routledge |
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2011 |
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http://ir.unimas.my/id/eprint/7159/1/Financial%20integration%20of%20East%20Asian%20economies.pdf http://ir.unimas.my/id/eprint/7159/ http://www.tandfonline.com/doi/pdf/10.1080/00036840902902243 |
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