A sole-authored research paper by Victor Pontines, Senior Economist at the SEACEN Centre, has been accepted for publication at the Journal of The Japanese and International Economies published by Elsevier, entitled “A Provincial View of Consumption Risk Sharing in Korea: Asset Classes as Shock Absorbers”.
Adopting spatial panel methods, this study found in the main that:
• net factor flows of debt, equity and Foreign Direct Investment retained earnings have all contributed favourably to consumption risk sharing during these episodes, with Foreign Direct Investment retained earnings robust in its positive contribution in buffering shocks to consumption.
• These results suggest that one of the alleged benefits of financial integration in terms of providing the insurance needed to cushion the economy against adverse shocks is tangible and real at least in the context of Korea.
An earlier version of the research paper was previously circulated as SEACEN Working Paper No. 2/2019.