Debt, Financial Sector Development and Asian Economic Growth

Abstract

This special issue of Economic Systems includes four papers that broadly relate to the relationship between financial sector development and debt in the Asia-Pacific region. The motivation underlying the choice of the Asia-Pacific region in this special issue is due to the increasing importance that this region will play in powering future world economic growth. In addition, in recent times the focus has been upon the importance of equity and financial sector development, as opposed to debt. The world currently faces many economic imbalances and increasing importance is being placed in the Asia-Pacific upon the breadth and depth of bond markets in helping to restore equilibrium in the world economy. Debt influences corporate funding opportunities and may assist countries in achieving sustainable economic growth. These four papers contribute to our knowledge on the relationship between debt and financial sector development.

Keywords: Debt, Development; Swaps, Country indebtedness, Japanese banks, Opacity, Capital flows

JEL Classification: F34, F43, G21