The status of real and financial integration of China, Hong Kong, and Taiwan is investigated using monthly data on one …-month interbank rates, exchange rates, and prices. Specifically, the degree of integration is assessed based on the empirical validity … increases in integration during the sample period. It is also found that exchange rate variability plays a major role in …

integration, namely real interest parity, uncovered interest parity, and relative purchasing power parity. There is evidence that … time. Amongst all, however, Hong Kong exhibits indications of a more advanced level of integration with the mainland. We … also find that evidence is surprisingly positive for integration with the US. We then turn to examining the determinants of …

The status of real and financial integration of China, Hong Kong, and Taiwan is investigated using monthly data on one …-month interbank rates, exchange rates, and prices. Specifically, the degree of integration is assessed based on the empirical validity … increases in integration during the sample period. It is also found that exchange rate variability plays a major role in …