ADF Fisher Chi-square (ADF-Fisher)

, 12

Agency theory

, 220, 223

Aggregate production function

, 23

Akaike Information Criteria (AIC)

, 55, 120–122, 202

AK model

, 68

Analysis of variance

, 108

Annual Report on Exchange Arrangements and Exchange Restrictions

, 240

Arbitraging

, 150, 172

ASEAN Free Trade Area (AFTA)

, 256

ASEAN–India Free Trade Agreement (AIFTA)

, 244

ASEAN-5 Market, India’s trade potential in

export potential

, 248–249

import potential

, 249–251

Association of South East Asian Nations (ASEAN)

, 104

ASEAN–India Free Trade Agreement (AIFTA)

, 244

India–ASEAN

, 247

literature review

, 244–246

objectives/purpose

, 246

trade potential

, 246–247

Augmented Dickey–Fuller (ADF)

, 24, 104

and PP tests

, 188

specification

, 82

unit root test

, 149–151, 174

Autoregressive distributed lags (ARDL)

, 10, 52

estimated long-run and short-run coefficients

, 58

Malaysia

, 67

Autoregressive Exponential Generalized Autoregressive Conditional Heteroscedasticity (AR-EGARCH)

, 10, 12

Backward spillovers

, 79

Baseline model

closed economy (See Closed economy)

open economy (See Open economy)

Bounds testing procedure

, 53

BSE Stock Exchange

, 52

Canonical Correlation Analysis (CCA)

, 161

Capital allocation

, 13, 20, 66

Capital flow channels

, 184

Capital flows

, 1, 6, 18, 59, 65

Capital-intensive commodities

, 78

Capital management techniques

, 199

Causal variables

, 38–39

CEIC database

, 200

Cell Tell

, 106

Chow test

, 262–264

Civil liberties (CL)

, 92–93

Closed economy

financial sector

, 211–213

real sector

, 211

Co-integration

, 7, 172–173

test

, 81

vector error correction mechanism

, 188–191

Co-movement

, 171–172, 174

Comprehensive Economic Cooperation Agreement (CECA)

, 244

Conceptual and theoretical framework

, 222–223

agency theory

, 223

FDI and spillovers

, 225–226

institutional theory

, 224–225

resources and capabilities

, 223–224

theory of transaction costs

, 224

transaction costs

, 224

Conmovement

, 171

Consumption expenditure

, 211

Contagion effect

, 18, 170–171

Contemporary capitalism

, 103

Control variables

, 9

Correlation matrix

, 149

Corruption

, 37, 132, 209

Covered Interest Parity (CIP)

, 236–237

CPI-agricultural labor

, 191–192

Crime-economic model

, 208

Cross-border capital flows

, 36

Cross-border linkages

, 171

Current account deficit (CAD)

, 114

Degree of freedom

, 163

De Jure Measures

, 239–240

Descriptive statistics

, 174

Developments/perturbations

, 184

Dickey–Fuller test

, 56

Differenced-GMM (DIF-GMM)

, 69

Digital economy

, 103, 110

Digital financial integration

, 101–110

Digital transformation

, 106

Doi-Moi

, 256, 264

Domestic credit (DC)

, 96

Domestic economy

, 7

Downside of the free capital mobility

, 21

Dynamic fixed effects (DFE) estimator

, 11

East Asian crisis

, 113

East Asia Summit (EAS)

, 257

Economic and financial integration

, 33–46

Economic growth

, 1, 22, 64, 91–92, 101–110

Economic integration

, 23, 33–46

Economic neoliberalism

, 105

Economic Partnership Agreement (EPA)

, 219–229, 220

Economic Recovery Program (ERP)

, 105

Economic volatility

, 7

Economist Intelligence Unit

, 38

Effective customs rate

, 190

EGARCH model

, 10

Emerging economies

, 20, 49–60, 63–72

Emerging market economies (EMEs)

, 1, 89, 114

Endogenous growth theory

, 51, 64

Endogenous variables

, 24

EPA between Mexico and Japan (EPAMJ)

, 220

Error correction techniques

, 7, 10, 26–28

Ethnic tension

, 135

Euro zone crisis

, 114

Exchange rate

, 118, 184–185

Exchange rate pass-through (ERPT)

, 191–192

Exogenous variables

, 187

External commercial borrowings (ECBs)

, 116

Feldstein–Horioka methodology

, 235

Final prediction error (FPE)

, 26

Finance ratio (FR)

, 145

Financial development

comprehensive index

, 157

finance ratio (FR)

, 145

vs. financial integration

, 159–162

financial interrelation ratio (FIR)

, 145

intermediation ratio (IR)

, 145–147

new issues ratio (NIR)

, 145

SAARC Countries

, 162–163

unit root test

, 149–151

vertical integration

, 147–149

Financial globalization

, 6

Financial integration (FI)

, 5–15, 18, 207–216, 233–240

globalization

, 233

international

, 22

Financial intermediaries

, 157

Financial interrelation ratio (FIR)

, 145

Financial liberalization

, 6

Brazil

, 50

high saving rates and investment

, 52

Financial market

integration

, 141–152

international

, 6, 15

Financial openness (FOP)

, 63–72

economic growth volatility

, 7

financial development

, 66

lower output volatility

, 8

Financial ratios

, 145

Financial stability

, 1

Financial volatility

, 21

Fiscal policy

, 89–99

Flexible exchange rates

, 52

Flow of funds (FOF)

, 142, 144

Foreign direct investment (FDI)

, 20, 38, 219–229, 222, 256

Brazil

, 50

Chinese economic

, 65

export growth and inward

, 78

export-oriented

, 79

generalized method of moments (GMM)

, 84, 85

India

, 50

inflows

, 85, 127–138

and international trade

, 78

nonexport-oriented

, 79

Foreign portfolio investment (FPI)

, 22, 80

FOREX

, 197–198, 204

Free Trade Agreement Mexico–European Union (TLCUE)

, 220

F-test

, 54

Fully modified ordinary least square (FMOLS)

, 202

General government final consumption expenditure

, 92

Generalized Moment Method (GMM)

, 68, 81, 83, 130

General-purpose technologies (GPTs)

, 103

Gini of income inequality

, 91

Global Financial Development Database (GFDD)

, 159

Global financial integration

, 148

Global investment

, 41–45

Globalization

, 6, 172, 191, 233

“Good” integration

, 35

Government expenditure

, 211

Government stability

, 132

Granger causality test

, 68, 80, 178

Gross capital formation (GCF)

, 92

Gross domestic product (GDP)

, 33

gross fixed capital formation

, 57

growth rate

, 53, 57

investment

, 51

total capital flow

, 69

Gross fixed capital formation (GFCF)

, 70

Growth and output volatility

, 5–15

Hannan–Quinn information criterion (HQ)

, 26

Heckscher–Ohlin–Samuelson model

, 78

Heteroscedasticity

, 24

Horizontal spillovers

, 79

Human capital (HC)

, 92

Hypothesis 4

, 263

Impossible Trinity

, 118

Income inequality

, 89–99

Index of integration

, 35–36

India–China syndrome

, 195–204

Indian capital market

, 147–149

India’s balance of payments (BoP)

Euro zone crisis

, 114

exchange rate

, 118

global changes

, 114

long-run exchange rate mechanism

, 122–124

Rupee convertibility

, 122–124

strengthening

, 115–117

structural changes

, 114

Industry-based strategy

, 223

Inequality equation

, 92–93

Inflation

, 51, 57, 92, 183–193

Informational cascades

, 43

Information and communication technologies (ICTs)

, 102

Instability

, 21

Institutional theory

, 224–225

Integrated global market

, 45

Interest rate

, 211

Intermediation ratio (IR)

, 145–147

International Country Risk Guide (ICRG)

, 129

International Monetary Fund (IMF)

, 36, 103

International trade

, 78

Internet

, 102

Interpretation

, 261

Investment

, 51, 52, 101–110, 184–185

Investment finance

, 64

Investment volatility

, 2

Johansen cointegration

, 26–28

Johansen co-integration test

, 174–175

Labor-intensive commodities

, 78

Latent variable modeling

, 33–46

Less developed countries (LDCs)

, 128

Liberalization

, 172, 196, 255–265

Linear causality analysis

, 22

Liquidity

, 21

Liquidity adjustment facility (LAF)

, 187

Literature survey

, 142–143, 185–187

LLC test

, 82

Log-linear form

, 187

Long-run exchange rate mechanism

, 122–124

Long-run sustainability

, 1

Look East Policy

, 244

Macroeconomic factors

, 70

Macroeconomic indicators (MEIs)

, 107

Macroeconomic instability

, 54

Macroeconomic volatility

, 6, 8

Marginal standing facility (MSF)

, 187

Mean equation

, 11

Mexico–Japan relationship

, 221–222

Microeconomic factors

, 21

Mobitel

, 106

Money laundering

, 207–216, 209

Money supply (MS)

, 92

Multidimensional Integration Index (MII)

, 36, 40

Multinational enterprises (MNEs)

, 78, 103

Multinational exposure

, 171

Multiple Indicators and Multiple Causes (MIMIC) model

, 36–37

Multiple regression analysis

, 108

Multiple regression coefficients

, 109

NAFTA

, 222

Net invisibles surplus

, 115

Network

, 103

“New” digital economy (NDE)

, 102

New index of integration

, 36

New issues ratio (NIR)

, 145

Nigerian economy

, 210

Nominal effective exchange rate (NEER)

, 118

Nonlinear causality

, 22

North American Free Trade Agreement (NAFTA)

, 220

Open economy, balance of payment (BoP)

, 214

Optimal development policy

, 209

Optimum lag selection

, 26

Ordinary least squares (OLS)

, 54, 106

OVC

, 10

Panel regression

, 161–162

Partial equilibrium

, 245

People’s Bank of China (PBOC)

, 197

Per capita GDP (PCGDP)

, 23, 33, 38

Phillips–Perron test

, 56

Policy implication

, 215

Political economy

, 90

Political Risk Index

, 131, 132

Political Risk Services (PRS)

, 129

Pooled Mean Group (PMG)

, 11

Population growth

, 92

Poverty alleviation

, 106, 107

PP-Fisher unit root tests

, 16

Price-based measures

, 236–237

Quality bureaucracy index

, 137

Quantitative techniques

, 235–236

Real effective exchange rate (REER)

, 118

Realizable imports potential

, 251

Regional trade agreement (RTA)

, 244

Religious tensions

, 135

Renminbi Internationalization

, 196

Research analysis

, 259–261

Reserve Bank of India (RBI)

, 117, 142

Resources and capabilities

, 223–224

Revised production function

, 23

Rise in exchange rate

, 185, 189

Risk perception

, 128–138

Rupee Convertibility

, 122–124, 195, 196

Schwarz information criterion (SIC)

, 26

Seemingly unrelated regression (SUR)

, 91

“Sharing movement,” 171

Short-run causality

, 26, 28

Simultaneous Openness Hypothesis (SOH)

, 66

Simultaneous panel models

, 94

Sound macroeconomic stability

, 1

South Asian Association for Regional Co-operation

, 162–163

Spacefon

, 106

Spillovers

, 78, 225–226

backward

, 79

horizontal

, 79

Standard deviation (SD)

, 131

State Administration of Foreign Exchange (SAFE)

, 200

Stock market

, 51, 59

Stock market comovements

asset pricing models

, 239

co-integration tests

, 239

correlation and causality tests

, 238

variance decomposition tests

, 238

Stock market liberalization

, 21

Stock market return

, 150

Structural adjustment programs (SAPs)

, 102

Sys-GMM

, 69

Tax evasion

, 212

Total trade (TD)

, 93–94

Trace test and eigenvalue test

, 190

Trade

, 77–85, 89–99, 184–185

Trade-based money laundering (TBML)

, 207–208

Trade integration

, 255–265

Tradeopen

, 23

Trade openness (TOP)

, 2, 5–15, 63–72, 65, 66, 72

TRAD_OPEN

, 10

Transaction costs

, 224

Trans-Pacific Partnership (TPP)

, 258

Unalloyed criterion

, 237

United Nations Conference on Trade and Development (UNCTAD)

, 81

Unit root test

, 26, 149–151, 174

Unrestricted Equilibrium Correction Model (UECM)

, 53

Variance decomposition tests

, 238

Variance equation

, 11

Vector auto regression (VAR)

, 2

Vector equilibrium correction model (VECM)

, 54

Vector error correction model

, 22, 24, 175–178

Vietnamese economy

, 255–265

Wang-Jahan Index (WJI)

, 201

Westel Limited

, 106

Wholesale Price Index

, 186

World Bank

, 159

World Development Indicator (WDI)

, 69, 95

World War II

, 226

YOEXPORTO program

, 225

Zero value

, 234