Short-term interest rate linkages in the Pacific-Basin markets

Abstract

Examination of the interdependence among short-term interest rates in various countries can provide accurate information about their degree of international market integration. Past studies on this subject have concentrated on developed economies in North America, Europe, and Japan. Since countries in the Pacific Basin are expected to play an increasingly important role in world trade and finance, the need for an insight into an interrelationship among these newly developed economies, and between them and the developed countries, is obvious.