The International Financial Integration Of China And India

Lane, Philip R.; Schmukler, Sergio L.

doi:10.1596/1813-9450-4132

Cited by 26 publications

(5 citation statements)

References 51 publications

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“…But there is also independent evidence of these differing portfolio preferences. In a detailed analysis of the net asset positions of China and India, for example, economists Lane and Schmukler (2006) show that the net investment positions of both are essentially 'short equity, long debt'. Particularly following the 1997 Asian crisis, an increasing share of emerging economies' savings were channelled into foreign exchange reserves held in the form of developedeconomy government bonds.…”

Section: Explaining the Rise In The Erpmentioning

confidence: 99%

A Secular Increase in the Equity Risk Premium

Daly

2016

International Finance

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There is an increasing consensus that global 'excess saving' has contributed to a reduction in equilibrium real interest rates. While economists dispute the extent of the decline, few now question that a decline has taken place or that excess saving has played a causal role. A key implication of this narrative is a decline in yields of all assets, including but not restricted to government bond yields. Yet, since the turn of the century, yields on global equity have risen. A complementary explanation is that there has been an increase in the global equity risk premium (ERP), which has simultaneously pushed risk-free yield curves lower and equity yields higher. Applying a sign restrictions approach, I find that 'excess savings' shocks were the predominant force affecting global real bond yields between the mid-1980s and 2000 but that 'risk premium' shocks have accounted for more of the decline in real bond yields since 2000. Ã With special thanks to Ben Broadbent and Philip Lane for their detailed comments and advice. Also thanks to

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Section: Explaining the Rise In The Erpmentioning

confidence: 99%

A Secular Increase in the Equity Risk Premium

Daly

2016

International Finance

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“…Furthermore, rapid trade growth in Asia has been supported by large investment flows (see Eichengreen andTong, 2005, andLane andSchmukler, 2007).…”

Section: Introductionmentioning

confidence: 99%

The impact of the global financial crisis on business cycles in Asian emerging economies

Fidrmuc

Korhonen

2010

Journal of Asian Economics

148

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We analyze the transmission of global financial crisis to business cycles in China and India. The pattern of business cycles in emerging Asian economies generally displays a low degree of synchronization with the OECD countries, which is consistent with the decoupling hypothesis. By contrast, however, the current financial crisis has had a significant effect on economic developments in emerging Asian economies. Applying dynamic correlations, we find wide differences for different frequencies of cyclical development. More specifically, at business cycle frequencies, dynamic correlations are typically low or negative, but they are also influenced most by the global financial crisis. Finally, we find a significant link between trade ties and dynamic correlations of GDP growth rates in emerging Asian countries and OECD countries. Terms of use: Documents inJEL Code: E32, F15, F41.

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“…In general, a sudden and severe capital flight could inflict huge pains on an economythe recent crises abound with examples of the detrimental impact of capital flight. See, for example, Blanchard and Giavazz (2006), Cheung et al (2007a, b), Feenstra and Wei (2009), Lane and Schmukler (2007), Obstfeld (2006), and Rodrik (2006).…”

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confidence: 99%