270S. Nozdrev (nozdrev-s-v@imemo.ru),
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation
Abstract. The Asian crisis of 1997 and the global financial and economic crisis of 2008–2009 put under question a number of positive aspects of global financial integration. The integration of international capital markets was the driving force behind the growth of financial innovations and contributed to the expansion of international trade in goods and services. However, it failed to provide a fully efficient allocation of resources among developing countries and proved to be a sources of risk to them. In this regard, although Asian markets continue to maintain a higher degree of integration with global markets, primarily G7 countries, another form of financial interaction develops – regional integration as the stock and banking markets develop in Asia. The issues of financial integration in Asia are increasingly coming to the same level with other types of integration – trade, production, labor. The implementation of regional integration in the monetary area is also aimed at increasing the payment turnover in local currencies in order to reduce the dependence on the dominance of financing in the American and European currencies. This process is ambiguous, when analyzing the main directions of financial integration of Asia in various segments of the financial market, it is revealed that with the value expansion of intra-regional assets and liabilities, there is a reduction in the regional share of portfolio investments, while the share of direct investments and bank financing increases. Considering the prospects for intraregional expansion of financial interaction in the process of forming a new financial architecture in Asia and closer participation of the largest countries of the region in it, the author believes that regional financial integration can be one of the ways to overcome the disadvantages of global financial integration, allowing developing Asian economies to use local financial resources in the region, as an alternative to part of the global financial market. However, weak development of the institutional framework, especially due to the predominant role of trade relations in the region, seriously hinder the process of transition to the creation of a developed financial structure of cooperation by analogy with the European Union, which is considered as a basic model.
Keywords: Asia, financial integration, cross-border operations, financial architecture, liquidity, portfolio investment, multilateral regional agreements
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