We develop an equilibrium model of real and financial market integration in which real firms and financial investors independently decide on their investment into different locations (countries). We show that, in the presence financial frictions, firms' real investment choices become strategic...

Chapter 1: Introduction -- Chapter 2: Bank Stability And Market Concentration In The Emerging Capital Markets Of Southeast Asia -- Chapter 3: Bank Competition + Market Concentration = Financial Stability? -- Chapter 4: Does Income Diversification Enhance Bank Efficiency And Stability In Periods...