The determinants of financial integration

Financial integration is a condition of which the financial markets are closely linked together. The financial integration imposed in the financial systems is conducted through various channels which includes financial liberalization, financial openness, capital account liberalization and external d...

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Main Author:	Nik Nurnina Hidayah, Nik Man
Format:	Thesis
Language:	eng eng
Published:	2017
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/7222/1/s821956_01.pdf https://etd.uum.edu.my/7222/2/s821956_02.pdf
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id	my-uum-etd.7222
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Sabki, Sharmilawati
topic	HG Finance
spellingShingle	HG Finance Nik Nurnina Hidayah, Nik Man The determinants of financial integration
description	Financial integration is a condition of which the financial markets are closely linked together. The financial integration imposed in the financial systems is conducted through various channels which includes financial liberalization, financial openness, capital account liberalization and external debt. The financial liberalisation theory that is developed by McKinnon (1973) argues for the importance of financial liberalisation for the country’s development. By enhancing the breadth and depth of financial markets, reducing information and transaction costs, financial integration would bring positive impacts to the economy as a whole. The objective of this study is to examine the impact of determinants (trade openness, gross domestic product, exchange rate, tax revenue and financial crisis) on financial integration in seven major economies in ASEAN countries. This study employs the unbalanced data for seven selected ASEAN countries which are Cambodia, Indonesia, Laos, Malaysia, Philippines, Thailand and Vietnam between the periods of 2000 to 2016. The dependent variables for this study is financial integration which is represented by external debt The study focuses on five independent variables which are trade openness, economic growth, exchange rate, tax revenue and financial crisis. The study discovers the positive relationship between economic growth and financial integration for seven ASEAN countries. In addition, the study also finds the positive link between tax revenue and financial integration. In contrary, the trade openness is found to have a negative relationship with the financial integration. Moreover, financial crisis also has a negative and significant relationship with financial integration. This study finds that the financial integration reduces during the post crisis period. Other than that, official exchange rate shows the positive but insignificant relationship with financial integration. For the policy makers, the findings could assist in the future policy making efforts.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Nik Nurnina Hidayah, Nik Man
author_facet	Nik Nurnina Hidayah, Nik Man
author_sort	Nik Nurnina Hidayah, Nik Man
title	The determinants of financial integration
title_short	The determinants of financial integration
title_full	The determinants of financial integration
title_fullStr	The determinants of financial integration
title_full_unstemmed	The determinants of financial integration
title_sort	determinants of financial integration
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2017
url	https://etd.uum.edu.my/7222/1/s821956_01.pdf https://etd.uum.edu.my/7222/2/s821956_02.pdf
_version_	1747828176326754304
spelling	my-uum-etd.72222021-05-10T07:42:02Z The determinants of financial integration 2017 Nik Nurnina Hidayah, Nik Man Sabki, Sharmilawati School of Economics, Finance & Banking School of Economics, Finance and Banking HG Finance Financial integration is a condition of which the financial markets are closely linked together. The financial integration imposed in the financial systems is conducted through various channels which includes financial liberalization, financial openness, capital account liberalization and external debt. The financial liberalisation theory that is developed by McKinnon (1973) argues for the importance of financial liberalisation for the country’s development. By enhancing the breadth and depth of financial markets, reducing information and transaction costs, financial integration would bring positive impacts to the economy as a whole. The objective of this study is to examine the impact of determinants (trade openness, gross domestic product, exchange rate, tax revenue and financial crisis) on financial integration in seven major economies in ASEAN countries. This study employs the unbalanced data for seven selected ASEAN countries which are Cambodia, Indonesia, Laos, Malaysia, Philippines, Thailand and Vietnam between the periods of 2000 to 2016. The dependent variables for this study is financial integration which is represented by external debt The study focuses on five independent variables which are trade openness, economic growth, exchange rate, tax revenue and financial crisis. The study discovers the positive relationship between economic growth and financial integration for seven ASEAN countries. In addition, the study also finds the positive link between tax revenue and financial integration. In contrary, the trade openness is found to have a negative relationship with the financial integration. Moreover, financial crisis also has a negative and significant relationship with financial integration. This study finds that the financial integration reduces during the post crisis period. Other than that, official exchange rate shows the positive but insignificant relationship with financial integration. For the policy makers, the findings could assist in the future policy making efforts. 2017 Thesis https://etd.uum.edu.my/7222/ https://etd.uum.edu.my/7222/1/s821956_01.pdf text eng public https://etd.uum.edu.my/7222/2/s821956_02.pdf text eng public other masters Universiti Utara Malaysia Abdullahi, M. M., Bakar, N. A. B. A., & Hassan, S. B. (2015). Determining the macroeconomic factors of external debt accumulation in Nigeria: An ARDL Bound Test Approach. Procedia-Social and Behavioral Sciences, 211, 745-752. Al-Fawwaz, T. M. (2016). Determinants of external debt in Jordan: An empirical study. International Business Research, 9(7), 116. Almekinders, G., Mourmouras, M. A., Zhou, M. 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The determinants of financial integration

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