Financial Integration in ASEAN: Practice Analysis
Authors: Olga V. Bogacheva, Ivan D. Rakov, Oleg V. Smorodinov
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The article discusses the practical aspects of integration process during formation of ASEAN Economic Community (2007–2015). The focal point is the analysis of the following directions of financial integration: financial markets liberalization, increase in volumes of direct and portfolio foreign investments, development of stock market cross-border segment. Moreover, the article covers issues related to minimization of threats of unstable national budget systems in ASEAN countries. Analysis is conducted within the context of the concept of financial integration “indirect impact” on economic growth and budgetary systems’ stability, which was explored in detail in the previous article (Financial Journal, 2016, № 5). The authors come to conclusion that generally successful development of financial integration during the period of ASEAN Economic Community formation became possible due to the meeting of certain “threshold conditions”, which characterize levels of financial sector development, foreign trade, public and market institutions, as well as public finance quality.