Skip to main content

Financial integration of East Asian economies: evidence from real interest parity

Buy Article:

$47.00 plus tax (Refund Policy)

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.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Data/Media
No Metrics

Document Type: Research Article

Affiliations: 1: Faculty of Economics and Management, Department of Economics,Universiti Putra Malaysia, 43400 UPM SerdangSelangor, Malaysia 2: Faculty of Business and Law,Multimedia University, Jalan Ayer Keroh Lama 75450, Bukit BeruangMelaka, Malaysia 3: Department of Finance and Economics,King Fahd University of Petroleum and Minerals, KFUPM, PO Box 1764Dhahran 31261, Saudi Arabia 4: Faculty of Economics and Business,Universiti Malaysia Sarawak (UNIMAS), 94300 Kota SamarahanSarawak, Malaysia

Publication date: 2011-06-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more