East Asia's Real Integration Soars Post-Crisis, Financial Integration Lags Behind
The paper looks at how East Asian economies are connected in terms of trade and finance before and after the Asian crisis. They used different measures like trade size, financial assets, and stock returns to see how integrated the region is. They found that real integration increased after the crisis, both locally and globally. Financial integration also increased, but not as much as real integration. Regional financial integration is lower than global financial integration. Financial integration tends to happen after real integration, especially regionally.