This paper aims at providing empirical evidence on the relationship between capital inflows and asset prices, focusing on China, Hong Kong, Indonesia, Korea and Thailand. Main findings are: the positive responses of share prices to portfolio inflows shocks were verified in all the estimated...

Indonesia has taken a series of the most drastic deregulatory steps on the financial sector among Asian developing countries since the 1980s. The financial deregulation has contributed to the accommodation of the loanable funds necessary for its intensive investment. Indonesia, on the other...