Prelims

Half Title Page

The Gains and Pains of Financial Integration and Trade Liberalization

Title Page

The Gains and Pains of Financial Integration and Trade Liberalization: Lessons from Emerging Economies

By

Rajib Bhattacharyya

Goenka College of Commerce and Business Administration, India

United Kingdom – North America – Japan – India – Malaysia – China

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Emerald Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2020

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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

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: ebiopportunity@gmail.com).

Azu Benedict is a Lecturer in the Department of Economics, College of Education, Agbor. He is a PhD student in the Department of Economics, University of Nigeria (email: abenzc@yahoo.com).

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: anilbhuimali@rediffmail.com).

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: m.billah@westernsydney.edu.au).

Chandrima Chakraborty (PhD) is now working as an Assistant Professor at Vidyasagar University, Midnapore, West Bengal, India. She has attended a number of seminars/conferences both at National and International level. She has publications in so many books and journals of reputation. Her areas of interests are industry, education, social economics, etc. (email: chandrimaeco@gmail.com).

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: ddas233@gmail.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: ramesh051073@gmail.com).

Chandni Dawani has been working with Research and Information System for Developing Countries (RIS), a think-tank based in New Delhi, as a Research Assistant and was previously associated with CUTS, Jaipur. She is also pursuing part-time PhD in Economics from The IIS University, Jaipur (email: c.dawani@gmail.com).

Richardson Kojo Edeme is currently a Senior Lecturer in the Department of Economics, University of Nigeria, Nsukka. He obtained a PhD in Economics in 2011 from University of Nigeria, specializing in public finance and fiscal policy. He has published widely in impact factor journals (email: richard.edeme@unn.edu.ng, kojodynamics@yahoo.com).

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: p.gangopadhyay@westernsydney.edu.au).

Prof. Arpita Ghose is now working as a Professor at Jadavpur University, Kolkata, West Bengal, India. She has attended a number of seminars/conferences both at National and International level. She has publications in so many books and journals of reputation. Her areas of interests are macroeconomics, education, agricultural economics, etc. (email: arpitaju@gmail.com).

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: 19599074@student.westernsdney.edu.au).

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: sebakjana@yahoo.co.in).

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: nkurantin@gmail.com, nkurantin@gimpa.edu.gh).

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: sidharthasankar09@gmail.com).

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: debu1641975@yahoo.co.in).

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: suvayan.neogi@gmail.com).

Chigozie Nelson Nkalu is a Lecturer in the Department of Economics, University of Nigeria, Nsukka-Nigeria. He obtained an MSc in Economics from University of Nigeria, specializing in development economics. His research interest is in the area of development and monetary economics (email: nelson.nkalu@unn.edu.ng).

Ozoemena Stanley Nwodo is a PhD student in the Department of Economics, University of Nigeria, Nsukka, and an associate member of UNCTAD virtual institute with several publications to his credit (email: nwodo.ozoemena.pg684422unn.edu.ng).

Bertha Z. Osei-Hwedie is a Professor of International Politics and Acting Dean of School of Research and Graduate Studies, GIMPA, Accra, Ghana. She was Professor and Chairperson of Centre for Culture and Peace Studies, University of Botswana. She holds a PhD from Brandeis University, USA, and MA from Carleton University (email: bertha.zoseihwedie@gmail.com).

Dipyaman Pal (PhD) is now working as an Assistant Professor at Bethune College, Kolkata, West Bengal, India. He has attended a number of seminars/conferences both at National and International level. He has publications in so many books and journals of reputation. His main areas of interests are agriculture, applied econometrics, etc. (email: dipyaman.pal@gmail.com).

Subhankar Parbat is an Assistant Teacher in the Narayana School. He has completed MCom from St. Xavier's College, Kolkata (email: subhankar02.parbat@gmail.com).

Abhisek Saha Roy, MCom, SLET (UGC), is an Assistant Professor in the Department of Management Studies and Commerce, Sikkim Manipal University, Directorate of Distance Education, Sikkim, India. His areas of interest include capital market, corporate finance, and economics.

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.

Som Sankar Sen, MCom, PhD, PGDFM, is an Assistant Professor in Commerce in the University of Burdwan, West Bengal, India. His areas of interest include capital market, money market, business valuation, banking and insurance, and international finance (email: somsankarsen@gmail.com).

Dr Anindita Sengupta (PhD) is an Associate Professor of Economics, Hooghly Women's College, University of Burdwan, West Bengal. She has many national and international level publications. She has presented papers in many national and international academic conferences inside and outside India. Her main areas of research are labor economics, gender economics, poverty, inequality, discrimination and industry (email: asengupta15@yahoo.com).

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: parthapratim.sengupta@hu.nitdgp.ac.in).

Madhabendra Sinha is a Senior Research Fellow, MPhil, and PhD (Thesis Submitted) in Economics at NIT Durgapur, India, and he has several publications from Elsevier, Springer, Wiley, Emerald, Inderscience, IGI Global, etc. in international economics, development economics, and macroeconomics areas (email: madhabendras@gmail.com).

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.

Ezebuilo Romanus Ukwueze (PhD) has a PhD in Economics (bias Development Economics) and is a Senior Lecturer at the Department of Economics, University of Nigeria, Nsukka in Enugu State, Nigeria (email: ezebuilo.ukwueze@unn.edu.ng).

Trupti Upadhyay is a Lecturer in the Bhawanipur Education Society College. She has completed Company Secretary Course from the Institute of Company Secretaries of India and MCom from Calcutta University (email: trupti.upadhyay001@gmail.com).

José G. Vargas-Hernández (MBA, PhD) is a Research Professor at University Center for Economic and Managerial Sciences, University of Guadalajara; Member of the National System of Researchers of Mexico; visiting research at Carleton University Canada; and visiting scholar at University of California Berkely. He has a PhD in Public Administration and Organizational Economics and published four books and more than 200 papers.

Foreword

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.

Soumyen Sikdar

Professor

Indian Institute of Management Calcutta, India

Acknowledgments

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

Editor