Future of Asia's Finance: How Can it Meet Challenges of Demographic Change and Infrastructure Needs?

27 Pages Posted: 7 Aug 2014

See all articles by Ding Ding

Ding Ding

International Monetary Fund

W. Raphael Lam

International Monetary Fund (IMF)

Shanaka Peiris

International Monetary Fund (IMF) - African Department

Date Written: July 2014

Abstract

There is a role for Asia’s financial sector to play to address the challenges associated with the region’s changing demographics and infrastructure investment needs. Enhancing financial innovation and integration in the region could facilitate intra-regional financial flows and mobilize resources from the aging savers in industrialized Asia to finance infrastructure investment in emerging Asia. Strengthening the financial ties within the region as well as with the global financial markets alongside appropriate prudential frameworks could also help diversify sources of financing and reduce the cost of funding in emerging Asia. Finally, financial deepening could help ease the potential overheating from scaling up infrastructure investment and hence achieve a more balanced growth in the region.

Keywords: Financial sector, Asia, Public investment, Infrastructure, Government expenditures, Economic integration, Capital flows, Demographic transition, bond, financial markets, financial sector development, bonds, bond markets, corporate bond, bond market, financial instruments, financial innovation, corporate bond markets, financial resources, demographics, sovereign bond, financial stability, financial market, financial systems, working age population, international finance, infrastructure bonds, demographic change, crowding out, life expectancies, derivative market, financial intermediation, international capital, sovereign bonds, demographic trends, equity finance, term bonds, infrastructure bo

JEL Classification: C23, F21, F41, G10

Suggested Citation

Ding, Ding and Lam, W. Raphael and Peiris, Shanaka, Future of Asia's Finance: How Can it Meet Challenges of Demographic Change and Infrastructure Needs? (July 2014). IMF Working Paper No. 14/126. Available at SSRN: https://ssrn.com/abstract=2477258

Ding Ding (Contact Author)

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

W. Raphael Lam

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Shanaka Peiris

International Monetary Fund (IMF) - African Department ( email )

1700 19th Street, NW
Washington, DC 20431
United States

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