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Book Sections Year : 2005

Currency regimes and the process of regional financial integration of the emerging countries

Abstract

The topology of emerging financial markets can be established either according to the usual criterion of geographical proximity, or according to a criterion of proximity of currency regimes. By explicitely considering the differences in currency regimes, and more specifically the differences in exchange rate regimes, the aim of this chapter is to analyse, firstly in analytical terms, the influence of proximity of currency regimes relative to that of geographical proximity in the process of integration which are operational on emerging markets. As for empirical evidence, we endeavour to identify these relations, like their evolutions since the beginning of the 1990s, and this for a sample of 22 countries distributed out of four emerging geographical regions (Asia, Latin America, CEECs, the Middle East). We show there is no particular evolution of the rate of integration, in terms of monetary proximity as well as in terms of geographical proximity. In addition, we show that the monetary influence dominates very largely the geographical one in the determination of the return for risk granted by the various national markets.
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Dates and versions

hal-00986580 , version 1 (02-05-2014)

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  • HAL Id : hal-00986580 , version 1

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Daniel Goyeau, Jacques Léonard, Dominique Pepin. Currency regimes and the process of regional financial integration of the emerging countries. Patrick Artus, André Cartapanis and Florence Legros. Regional currency areas in financial globalization, Edward Elgar, pp.41-64, 2005. ⟨hal-00986580⟩
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