If one were to have a look at the aftermath of the crisis, the integration
of the Asian countries with the rest of the world (especially that of China with the US) has been much faster than within Asia itself (intra-regional co-operation). A few facts in this regard will make this statement clearer. According to a recent IMF working paper ‘Financial Integration in Asia: Recent Developments and Next Steps’, Asia’s intra-regional cross-border portfolio investment is relatively small. Asia’s portfolio liabilities to other Asian countries amounted to only 2.25% of Asia’s GDP in 2004, less than one-third of Asia’s liabilities to either 
North America or the EU – which was about 7.25% of Asia’s GDP to each region. Moreover, liabilities to these two regions rose by a larger amount during 2001-2004 than intra-regional liabilities. The same pattern holds for Asia portfolio’s assets. The same basic pattern holds for cross-border bank borrowing & lending, with Asian countries dependent more on inter-regional flows than intraregional flows. Global cross border claims by Asian banks roughly doubled during 1999–2005, but claims on Asia grew by a slower rate than claims on either the US or the EU, & through 2005, claims on Asia remained smaller than claims on these other two regions. Similarly, European or North American bank claims on Asia were larger & grew faster than Asian bank claims on Asian countries.
of the Asian countries with the rest of the world (especially that of China with the US) has been much faster than within Asia itself (intra-regional co-operation). A few facts in this regard will make this statement clearer. According to a recent IMF working paper ‘Financial Integration in Asia: Recent Developments and Next Steps’, Asia’s intra-regional cross-border portfolio investment is relatively small. Asia’s portfolio liabilities to other Asian countries amounted to only 2.25% of Asia’s GDP in 2004, less than one-third of Asia’s liabilities to either North America or the EU – which was about 7.25% of Asia’s GDP to each region. Moreover, liabilities to these two regions rose by a larger amount during 2001-2004 than intra-regional liabilities. The same pattern holds for Asia portfolio’s assets. The same basic pattern holds for cross-border bank borrowing & lending, with Asian countries dependent more on inter-regional flows than intraregional flows. Global cross border claims by Asian banks roughly doubled during 1999–2005, but claims on Asia grew by a slower rate than claims on either the US or the EU, & through 2005, claims on Asia remained smaller than claims on these other two regions. Similarly, European or North American bank claims on Asia were larger & grew faster than Asian bank claims on Asian countries.For Complete IIPM Article, Click on IIPM Article
Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
