Integration versus Segmentation in Asian Financial Market: The Prospect of Regionalism in Asia

Abstract

This paper draws the prospect of regionalism among inancial market in Asia (Indonesia, Malaysia,  Philippine,  Singapore,  China,  Hong  Kong,  Japan  and  South  Korea).  The  irst part  examines  the  correlation  among  them  that  lead  to  regional  integration.  The  second part shows the possibility of integration or segmentation between Asia countries and world. The  next  part,  tries  to  draw  whether  last  inancial  crises  1997  gave  different  result  to  the integration process. The correlation between Asia regional return and world return is tested by F-test (degree of signiicant 5%). The inal part of this paper gives a picture as to how the prospect  of  integration  or  segmentation  return  of Asia  and  world  can  initiate  a  process  of economic integration   towards a trade block development. activate javascript