Asia Regional Integration Center

ADB has released a new study detailing the emergence of a new form of regionalism in Asia that is market-led, dynamic, outward-looking, and supported by intergovernmental cooperation initiatives. The study shows that this is a positive development contributing to growth and stability not only in Asia, but also in the rest of the world. To take full advantage of the increased regional interdependence, Asian economies need to engage in closer dialogue and policy coordination. The study also proposes the creation of new regional institutions such as an Asian Financial Stability Dialogue and an Asian Secretariat for Economic Cooperation. Download the study. Order the book.

Eswar Prasad, Cornell University, discussed whether capital account liberalization is a good thing and gave suggestions on maximizing the benefits of financial globalization. See the presentation.

Is capital account liberalization a good thing? It seems to have brought more pain than higher growth that its proponents promise. If financial globalization is here to stay and further de facto opening of the capital account is inevitable, what can policymakers do to maximize the benefits while minimizing the costs? These issues will be tackled by Eswar Prasad, Cornell University, based on his recent research with other prominent scholars. Confirm participation and send personal information (name, designation and affiliation) to Liza Cruz (mlscruz@adb.org) on or before 23 June 2008. Seats are limited.

Soyoung Kim of Korea University and OREI Head Jong-Wha Lee find that real integration in East Asia has been accelerating. They point out that regional financial integration lags behind real integration and that financial markets in the region are more integrated with global markets than with each other. Read more.

OREI's Head Jong-Wha Lee and Cyn-Young Park examine the US subprime-generated turmoil and its potential spillover on emerging Asia's financial markets. While the markets have suffered limited impact, they remain open to further contagion given underlying weaknesses in the region's financial systems. Read more.

The recent proliferation of free trade agreements (FTAs) in Asia and the Pacific is placing mounting strain on the region’s FTA negotiating capacity and on the knowledge and technical skills of government officials. Complementing the FTA training courses conducted by ADB, this reference book aims to increase the knowledge and capacity of officials who are actively involved in designing, negotiating, and implementing FTAs. The book consists of three parts: (i) Economics of an FTA; (ii) Coverage of an FTA; and (iii) Negotiating, Implementing, and Evaluating FTAs. Read more.

Soyoung Kim of Korea University and Doo Yong Yang of Korea Institute for International Economic Policy show that the surges of capital inflows in East Asia have contributed to asset price appreciation, although capital inflow shocks explain a small part of the fluctuations.

Charles Adams of the National University of Singapore notes that East Asian banking has improved since the financial crisis through more foreign ownership, greater transparency, new lending, and better supervision and regulation, but argues further restructuring and reform are needed.