Australia’s financial connectedness with the Asia-Pacific region lags its deepening economic, diplomatic and cultural ties, according to a landmark new report by the Australian Centre for Financial Studies.
Financial services are the largest single industrial segment of the Australian economy. The export of financial services is larger than tourism and education. However, high barriers to services trade and cross-border investment in Asia may be inhibiting Australian firms and investors from growing their connections with the region.
Co-author Amy Auster, Deputy Director, Australian Centre for Financial Studies, says it’s critical to understand both the opportunities and costs of financial integration with Asia, particularly as Australia has a large financial services sector and a significant international investment position.
With the gradual opening of China’s capital account and the conclusion of three recent free trade agreements with China, Japan and South Korea, these events will change the way in which the Australian financial system interacts with a rising Asia.
Download the report “Financial Integration in the Asia Pacific: Fact and Fiction” here.
The Australian Centre for Financial Studies (ACFS) promotes thought leadership in the financial sector. The ACFS facilitates industry-relevant, rigorous research and independent commentary, drawing on expertise from academia, industry and government, and aims to boost the global credentials of Australia’s finance industry, supporting Australia as an international centre for finance practice, research and education.