(2019), "Prelims", Bhattacharyya, R. (Ed.) The Gains and Pains of Financial Integration and Trade Liberalization, Emerald Publishing Limited, pp. i-xxi. https://doi.org/10.1108/978-1-78973-999-220191001Download as .RIS
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The Gains and Pains of Financial Integration and Trade Liberalization
The Gains and Pains of Financial Integration and Trade Liberalization: Lessons from Emerging Economies
Goenka College of Commerce and Business Administration, India
United Kingdom – North America – Japan – India – Malaysia – China
Emerald Publishing Limited
Howard House, Wagon Lane, Bingley BD16 1WA, UK
First edition 2020
Copyright © 2020 Emerald Publishing Limited
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ISBN: 978-1-83867-004-7 (Print)
ISBN: 978-1-78973-999-2 (Online)
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List of Figures and Tables
|Figure 3.1||The Time Structure of Events|
|Figure 3.2||Stability of the Fixed Points|
|Figure 10.1||Trend of FDI Inflows to the Developing Countries during 2000–2014|
|Figure 12.1||Trend of Financial Integration Indicators Across South Asian Countries|
|Figure 12.2||First Canonical Correlation between the Financial Integration and Financial Development|
|Figure 14.1||Indian Growth, Inflation, and Exchange Rate|
|Figure 16.1||Determination of Equilibrium Aggregate Output and Income from Keynesian Cross|
|Figure 16.2||The demarcation curves showing the stability of the equilibrium|
|Figure 19.1||India's Bilateral Trade with ASEAN-5|
|Figure 20.1||GDP Per Capita (Constant 2010 US$) for Vietnam from the Year 1998 to 2017|
|Table 1.1||Result of the AR-EGARCH Model for the Output Components (Consumption and Investment)|
|Table 1.2||Result of the Impact of Trade Openness and Financial Integration Effect on Growth and Output Volatility|
|Table 2.1||Johansen Cointegration Test Results|
|Table 2.2||Short-run Causality Test Results (Wald Test)|
|Table 3.1||Estimates of Coefficient α: Causes of Integration from the MIMIC Model|
|Table 3.2||Estimates of Coefficient β: Index of Integration from the MIMIC Model|
|Table 3.3||Ranking of Major Australian Trade Partners in Terms of Multidimensional Integration Index (MII)|
|Table 4.1||Order of Integration of Variables in India and Brazil According to Augmented Dickey–Fuller Test and Phillips–Perron Test|
|Table 4.2||Results from Bounds Tests on Eq. (4.5)|
|Table 4.3||Estimated Long-run and Short-run Coefficients for India and Brazil Using the ARDL Approach|
|Table 5.1||One-step sys-GMM Panel Estimation for Emerging Economies|
|Table 6.1||Estimated Statistics of Unit Root Tests|
|Table 6.2||Generalized Method of Moments (GMM) Estimation of the Impact of Foreign Direct Investment (FDI) on Trade|
|Table 6.3||Generalized Method of Moments (GMM) Estimation of the Impact of Foreign Direct Investment (FDI) on Gross Domestic Product (GDP)|
|Table A1||Results of Simultaneous Panel Estimation (Method: Panel EGLS (Cross-section SUR))|
|Table A2||Results of Marginal Effects|
|Table 8.1||Multiple Regression Analysis: Ordinary Least Squares|
|Table 8.2||Analysis of Variance|
|Table 8.3||Multiple Regression Coefficients|
|Table 9.1||Anova Tables for Models I and II|
|Table 9.2||Comparison of Results of Pre-reform Period (1975–1976 to 1990–1991) and Post-reform Period (1991–1992 to 2014–2015)|
|Table 10.1||Summary Statistics on Political Risk Perception in Emerging Economies|
|Table 10.2||Static Panel Regression Results for 15 Emerging Countries for the Period 2000–2014|
|Table 11.1||Movements of Financial Ratios in India|
|Table 11.2||Correlation Matrix of the Log Values of Stock Indices during 1998–2018|
|Table 11.3||Periodic Changes in Correlation Coefficients of Stock Indices|
|Table 11.4||Unit Root Test Results|
|Table 11.5||Correlation Matrix of Cyclical Fluctuations of Stock Indices during 1998–2018|
|Table 11.6||Correlation Matrix of Returns in Different Stock Markets (1998–2018)|
|Table 12.1||Indicators of Financial Development of the Asian Countries, 2004–2016|
|Table 12.2||The Results of Regression on the Basis of Pooled Data (Observation 108)|
|Table 13.1||Johansen Co-integration Test Result (Lag Interval: 1 to 4)|
|Table 13.2||Vector Error Correction Estimates Result|
|Table 13.3||Granger Causality Test Result|
|Table 15.1||Types and Objectives of Capital Management Techniques That Have Been Employed in India and China|
|Table 15.2||Co-integration Results|
|Table 15.3||Comparison of FMOLS Results for India and China|
|Table 17.1||Mexican Exports to Japan (in Millions of Dollars)|
|Table 17.2||Products Exported to Japan. Main Products That Mexico Currently Exports to Japan|
|Table 19.1||India's Realizable Exports Potential – Summary|
|Table 19.2||Commodities with Maximum Potential for Exports – Individual Countries|
|Table 19.3||India's Realizable Imports Potential – Summary|
|Table 19.4||Commodities with Maximum Potential for Imports – Individual Countries|
|Table 20.1||The Paired Sample T-Test for GDP Per Capita, FDI Net Inflows, and Exports of Goods and Services (as a % of GDP) for Vietnam during the Post- and Pre-liberalization Period|
|Table 20.2||Results of the Residual Sum of Square (RSS) for the Chow Test|
About the Authors
Ebikabowei Biedomo Aduku obtained his MSc Economics from the University of Nigeria, specializing in development and health economics. He is currently a PhD Economics student at Nmandi Azikiwe University, Awka (email: firstname.lastname@example.org).
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Mainak Bhattacharjee is presently an Assistant Professor in Economics at Loreto College, Kolkata, India. He has also worked in the same post in The Heritage College, Kolkata, India. He has obtained MPhil from Jadavpur University. He has been working in the areas of macroeconomics and its microfoundations and has produced many research articles published in reputed journals.
Anil Bhuimali is currently the Vice Chancellor of Raiganj University, West Bengal, India and prior to that he served as Professor of Economics at the University of North Bengal, India. He has published more than 100 papers, supervised about 30 PhD scholars, and also acted as editor of several books and journals. He is a well-known resource person in international economics (email: firstname.lastname@example.org).
Dr Mamun Billah, School of Business, Western Sydney University, Bankstown Campus, NSW, Australia. He is a Lecturer of Accounting at Western Sydney University, completed his PhD in 2017, and a qualified member of CPA Australia. Mamun's research interest is in the area of behavioral research, management control systems, environmental accounting research, and accounting (email: email@example.com).
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Arup Chattopadhyay is a Professor at the Department of Economics, and ex-Dean, Faculty of Arts, Commerce, etc. at The University of Burdwan. He has broadly published in the areas of finance, agriculture, and international trade. He regularly acts as resource person in various prestigious conferences and seminars across India.
Jayeeta Roy Chowdhury is currently pursuing PhD in Economics from Jadavpur University. She has been associated with Loreto College, Kolkata, and later on The Heritage College, Kolkata, as the Guest Faculty of Economics.
Dipankar Das is a PhD student in Economics at West Bengal State University and obtained his MPhil in Economics from this university in 2017 (email: email@example.com).
Ramesh Chandra Das is currently an Associate Professor of Economics at Vidyasagar University, West Bengal, India, with 20 years of teaching and research experience in different fields of the subject. He has obtained Masters, MPhil, and PhD in Economics from the University of Calcutta. Dr Das has contributed several research papers to national and international journals with reputations and has edited many by reputable international publishers (email: firstname.lastname@example.org).
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Partha Gangopadhyay, School of Business, Western Sydney University, Bankstown Campus, NSW, Australia. He is an Associate Professor in Economics and held chair professorships in Germany and the South Pacific, and visiting professorships in the US, Canada, and India. He is rated among the top economists of the globe listed by RePEc, a senior editor of several leading journals and a book series of Emerald, an executive director of Gandhi Centre in Bangalore, India (email: firstname.lastname@example.org).
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Bankim Chandra Ghosh is presently an Assistant Professor in Economics at Katwa College, West Bengal, India. He has about seven years of teaching experience. He has a list of publications in reputable journals and edited books.
Dipti Ghosh is currently pursuing PhD in Economics from Jadavpur University and has obtained MPhil in Economics from the same alma mater. She has been associated with Bijoy Krishna Girls' College, Howrah, as the Guest Faculty of Economics.
Siddharth Jain, School of Business, Western Sydney University, Parramatta Campus, NSW, Australia. He is a PhD candidate at Western Sydney University. He has a long-standing experience of financial equity markets. He has served at a senior management position before entering academia and has an active interest in behavioral economics, finance, and accounting research (email: firstname.lastname@example.org).
Sebak Kumar Jana, PhD, is currently a Professor in Economics, Department of Economics, Vidyasagar University, West Bengal, India. He has published books and several research papers in reputable journals at home and abroad. His area of interest includes environmental and resource economics and economics of Education (email: email@example.com).
Asim Kumar Karmakar, PhD, is now an Assistant Professor in Economics, School of Professional Studies, Netaji Subhas Open University, India. He has written books and research articles (more than 100) published by Springer and IGI Global and others. He is the recipient of two national and one international academic awards (email: iasimkkarmakar@ gmail.com).
Napoleon Kurantin is a Senior Lecturer and Head of the Department of Development Policy in the Ghana Institute of Management and Public Administration (GIMPA), School of Public Service and Governance Accra, Ghana. He holds a PhD in Development Economics from the University of Guelph, Canada (email: firstname.lastname@example.org, email@example.com).
Arindam Laha, PhD is currently teaching Economics at the Department of Commerce, The University of Burdwan, India, since 2009. His areas of research interest include agrarian institutions, financial inclusion, human development, and social and solidarity economy.
Sidhartha Sankar Laha is an Assistant Professor of Economics at Tufanganj College, Cooch Behar, India. He did his MA and PhD in Economics from the University of North Bengal, India. He published several articles in reputable journals, contributed in edited books, and also completed some research projects of UGC and ICSSR (email: firstname.lastname@example.org).
Hiranya Lahiri did his Masters from Jawaharlal Nehru University, where he ranked first. He completed his PhD in Economics from Jadavpur University. He specializes in macroeconomics and open-economy macroeconomics.
Debashis Mazumdar received his MPhil from Calcutta University and PhD from Rabindra Bharati University, in Economics. At present, he is working as Professor of Economics at The Heritage College, Kolkata. He was an Associate Professor in Bangabasi College under Calcutta University along with being visiting faculty in the Nababullygunge Mahavidyalaya, Kolkata. He has written a good number of text books on Managerial Economics and contributed articles in many national and international journals.
Sovik Mukherjee is an Assistant Professor in Economics, Faculty of Commerce and Management Studies, St. Xavier's University, Kolkata, India. He is a Visiting Research Fellow at NISPAcee, Slovakia, for 2019–2020. His research interests are in the areas of applied game theory, public economics, and international economics.
Dr Debabrata Mukhopadhyay has been serving at present as an Associate Professor in the Department of Economics at the West Bengal State University, Kolkata, with 20 years of teaching and research experience. He has obtained his PhD in Quantitative Economics from the Indian Statistical Institute in 2008 (email: email@example.com).
Suvayan Neogi has been working with Trade Policy Division, Department of Commerce, Ministry of Commerce and Industry, Government of India, and Centre for WTO Studies (CWS), Indian Institute of Foreign Trade (IIFT), Delhi, as Research Fellow. He is also pursuing Doctorate in Economics from Symbiosis International University, Pune (email: firstname.lastname@example.org).
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Avisek Sen (MCom, MBA) is currently teaching at the Department of Commerce in Kabi Jagadram Roy Government General Degree College. His research interest includes financial inclusion, human development, and quality of life.
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Partha Pratim Sengupta is a Professor of Economics at the Department of Humanities and Social Sciences, National Institute of Technology Durgapur, India. He has about 35 years of teaching and research experience. He published more than 100 research papers in indexed journals and also supervised about 25 PhD students in economics and management areas (email: email@example.com).
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Vineet Srivastava is an Assistant Professor at Kunwar Singh College, Laheriasarai, Bihar. He is currently pursuing his PhD at The University of Burdwan. He completed the UGC-NET and WB-SET in 2014. He was also awarded the West Bengal State-Fund Junior and Senior Research Fellowship for pursuing his PhD.
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Trade liberalization and financial integration are the two most important pillars on which the global economy rests today, or to change the metaphor a bit, the two most important wheels on which the global economy currently moves. And through ups and downs of booms and recessions and for better or worse, they are likely to remain important in the foreseeable future. Given the importance of the twin phenomena, it is hardly surprising that economists have devoted an enormous amount of attention to the discussion of their nature and implications. The implications touch every aspect of life of the representative citizens of all types of countries across the world. This is particularly salient for those economies in the erstwhile Third World who have embarked on growth trajectories using a very wide spectrum of market-friendly reforms. A big literature has grown over the past decades chronicling the experience of these emerging economies. Under the circumstances, any new book on the topic needs to justify itself on grounds of coverage and quality. In my judgment, the present volume is able to do so successfully on both counts.
The coverage is truly impressive, ranging over issues like the link between globalization and financial integration and growth via FDI and current account trade, fiscal and monetary policies and inequalities in a regime of openness, financial development and financial market integration in India, capital account convertibility in India and China, the two Asian giants, the economic integration of Australia with the developing nations, India and the ASEAN, and so on. Owing to their importance, many of these issues have already received much attention. But by choosing carefully an international array of authors who are active researchers in their fields of study, the editor has succeeded to add value to a considerable literature.
Only wide coverage cannot, of course, ensure quality. Coverage has been adequately backed up by good economic reasoning and use of rigorous statistical methods applied to up-to-date data. Good quality is the result. The editor deserves to be congratulated for a job done well. I am particularly happy because he is my old student.
Indian Institute of Management Calcutta, India
After a long and persistent endeavor starting from conceptualization of the theme, selection of papers, editing, and ultimate publication of the proposed edited book entitled The Gains and Pains of Financial Integration and Trade Liberalization: Lessons from Emerging Economies, I really feel delighted to spell out that this book is a unique compilation of best-quality contributions from authors and researchers from all over the world. I really feel proud as an editor that the authors of this book have provided immense support, cooperation, and extended their whole hearted helping hand to make this project a successful one. Hence, it would be unjustified if the contributors are not acknowledged for their valuable contributions. I would also like to express my heartiest thanks to other academicians and resource persons of the society associated with this project.
At the first place, I must thank the entire Emerald Publishing team for their able and insightful guidance and support at every stage of this edited volume. Secondly, I express my deep gratitude and respect toward my teacher, mentor, and PhD supervisor, Prof (Dr) Soumyen Sikdar, Indian Institute of Management (IIM), Kolkata. His advice, guidance, and valuable suggestions have paved the right way from the beginning to the finishing line. I will also remain indebted to my friend Dr Ramesh Chandra Das, Associate Professor, Department of Economics, Vidyasagar University, for his constant mental support. I also express my thanks and gratitude to Dr Partha Gangopadhyay, Professor of Economics Western Sydney University, New South Wales Australia; Prof (Dr) Debashis Mazumdar, The Heritage College Kolkata, India, for their inspiration and valuable comments.
But above all I am sincerely grateful to my parents, my wife, and my daughters and other relatives and family members for their cooperation, inspiration, and tremendous mental support.
Dr Rajib Bhattacharyya
- Chapter 1 How Do Trade Openness and Financial Integration Affect Growth and Output Volatility?
- Chapter 2 Globalization, Financial Integration, and Growth: Any Linkage So Far for Brazil, China, and India?
- Chapter 3 A Latent Variable Modeling of a Multidimensional Index of Economic and Financial Integration of Australia with the Arab and Southeast Asian Emerging Economies
- Chapter 4 Understanding Characteristics of Economic Growth in the Emerging Economies during the Post-financial Liberalization Period: Case Study of India and Brazil
- Chapter 5 Trade Openness, Financial Openness, and Growth in Emerging Market Economies: A Dynamic Panel Approach
- Chapter 6 FDI, Trade, and Economic Growth: A Dynamic Panel Study on Global Economy
- Chapter 7 Joint Estimation of Fiscal Policy, Income Inequality, Trade and Economic Growth: Evidence from Emerging Market Economy
- Chapter 8 Digital Financial Integration, Investment, Economic Growth, Development and Poverty Reduction
- Chapter 9 A New Look at the Dynamics of India's Balance of Payments through Its Liberalization Episode
- Chapter 10 Impact of Risk Perceptions on Foreign Direct Investment (FDI) Inflows: A Study of Emerging Economies
- Chapter 11 Financial Development and Financial Market Integration in India: A Post-reform Scenario
- Chapter 12 Trends in Financial Integration and Financial Development in Selected Asian Countries: Is There Any Relationship?
- Chapter 13 Co-movement and Co-integration: A Study on Nifty, Dow Jones, and N225
- Chapter 14 Imported Inflation through Exchange Rate in India
- Chapter 15 Looking Back at Capital Account Convertibility: India–China Syndrome
- Chapter 16 Financial Integration, Its Implication for Money Laundering – An Introspection
- Chapter 17 Economic Partnership Agreement between Mexico and Japan and Its Impact on Foreign Direct Investment – A Strategic Analysis
- Chapter 18 A Survey of Research Studies on Measurement of Financial Integration
- Chapter 19 India's Export Opportunities in the ASEAN Market
- Chapter 20 A Study on the Effect of Liberalization and Trade Integration on the Vietnamese Economy and Its Comparative Analysis with that of India