Work

Capital Mobility between ASEAN+3 and the US: An Analysis of Saving-Investment Relationship

Year: 2025

Type: article

Abstract: By using the hedging approach, this paper empirically examines the effectiveness of portfolio diversification in ASEAN+3 and US financial markets. Equity returns which is extracted from equity indices is used in the estimation by spanning data period from January 1991 to June 2018 which is disaggregated between pre-and post-financial cooperation agreement period. The study offers several outcomes for example portfolio with multiple assets is more effective than that of two-asset portfolio. The assets of emerging economies are more effective than that of developed economies due to the reflection of efficient market hypothesis. The study suggests policy recommendation for selecting the right assets to form an effective portfolio diversification.

Source: International Journal of Economics and Financial Issues

DOI: 10.32479/ijefi.18735

Authors: Farihana Shahari, Md. Saifur Rahman, Mahfuzur Rahman

Institutions: International Islamic University Malaysia, RMIT University, University of Sharjah

Language: English

Topic: Financial Risk and Volatility Modeling

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $300

OpenAlex ID: W4409379804

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