Potential Impact of Integration of Financial Services on Economic Growth ASEAN5 + Vietnam

Abstract

The paper is structured aims to analyze thepotential economic impact and the integration of financial services to economic growth ASEAN5 + Vietnam. To estimate effect of financial integration on economic growth, this paper uses the findings of Edison. This paper will look at the transition from the integration of financial services is mirrored by financial openness to investment by looking at the influence of the government balance, population growth and inflation.

It can be concluded that financial integration is able to boost economic growth through investment channel. In order to integrate the financial sector in ASEAN5+Vietnam, there are three main things that inherent in financial system namely financial literacy, financial inclusion, and financial deepening. ASEAN5+Vietnam need to develop these three agendas before integrate; hence the multiplier effect on economic growth through investment channel can be lifted up and sustainable at acertain level.