scholarly journals FINANCIAL MARKET INTEGRATION IN ASIA: EVIDENCE FROM STOCK AND BOND MARKET

2018 ◽  
Vol 15 (01) ◽  
pp. 27
Author(s):  
Fauziah Fauziah
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Market Integration ◽  
Financial Integration ◽  
Empirical Studies ◽  
Bond Market ◽  
Stock Market Integration ◽  
Financial Market Integration ◽  
Stochastic Trends ◽  
Causality Tests

Financial integration especially in Asian financial market has been a defining feature of the world economy and has become a central issue in international finance for the past decades. However, there is limited empirical studies on the integration of Asian bond market. Therefore, this study aims to examine the financial market integration in Asia (Stock and Bond Market). The sample of this study is the major of Asian financial markets including Japan, China, Hong Kong, Singapore and South Korea during January 2009 – December 2016. Correlation, co-integration and causality tests used in this study to investigate the financial markets integrations. This study shows that both stock and bond returns are co-integrated and indicate as a common stochastic trends. Stock market integration appears to be much stronger compared to the less developed. This result is very important for investors to assess potential gains from portfolio diversification, and for a financial policymaker to manage market policies effectively and handle contagion risks that might be caused by international shock transmissions.

scholarly journals Assessing Financial Market Integration in Vietnam: A Price – Based Approach

2020 ◽  
Vol 9 (4) ◽  
pp. 105
Author(s):  
Tran Thi Xuan Anh ◽  
Ngo Thi Hang ◽  
Nguyen Thi Lam Anh
Keyword(s):  
Stock Market ◽  
Financial Market ◽  
Market Integration ◽  
Bond Market ◽  
Stock Market Integration ◽  
Financial Market Integration ◽  
Beta Coefficient ◽  
Integration Levels ◽  
Beta Convergence ◽  
Global Stock

This paper investigates the existence of financial market integration between Vietnam and the region (ASEAN, ASIAN) as well as the world using price-based indicators. Our paper is the first to assess the overall integration of the Vietnam financial market based on two different datasets for different sub-capital markets, the bond market and stock market, during the period of 2009 - 2018. The empirical results show that Vietnam, compared to other countries in research, holds lower regional and international integration levels in both the bond market and the stock market, but demonstrates considerably strong signs of progressing regional and global stock market integration over the period. Especially, the absolute values estimated from the beta coefficient and beta convergence approaches for the Vietnamese stock market are larger than for the bond market, proving better convergence degree and speed of Vietnamese stock market over the bond market. These bring policymakers and regulators new thoughts and more challenges in designing appropriate policies towards the development of the financial markets in the future.

Economic and Financial Integration in South Asia

2016 ◽  
pp. 298-315
Author(s):  
Piyadasa Edirisuriya ◽  
Abeyratna Gunasekarage
Keyword(s):  
South Asia ◽  
Financial Market ◽  
Market Integration ◽  
Financial Integration ◽  
Cost Benefit ◽  
The South ◽  
Economic Activities ◽  
Economic Sectors ◽  
Financial Market Integration ◽  
Almost All

Many countries in the South Asia region are global players in many aspects due to the nature of emerging markets as well as being democratic countries irrespective of the fact that many people in the region are troubled by higher level of poverty. Many years of regulation in the South Asian region has hampered economic growth and reduced the level of efficiencies in almost all economic activities. However, implementation of market deregulations since the early 1980s in many sectors has benefited the majority of countries in the region in a number of ways. Among others, one of the most significant benefits is the integration of markets in the financial as well as other economic sectors generating better economic achievements. In this study, we examine the process of economic and financial market integration as well as cost/benefit of such a process. We find significant benefits of economic and financial market integration to the region.

Durability and Change in Financial Systems

2016 ◽  
Author(s):  
Richard Deeg ◽  
Elliot Posner
Keyword(s):  
Financial Market ◽  
Market Integration ◽  
Analytical Approach ◽  
Financial Regulation ◽  
Financial Integration ◽  
Historical Institutionalism ◽  
Financial Systems ◽  
Financial Market Integration ◽  
European Financial Integration

Historical institutionalism features extensively in the study of banking and financial regulation in Europe. This chapter reviews scholarship that explicitly, implicitly or inadvertently draws heavily on that tradition’s central tenets. The authors find that historical institutionalism can help explain the emergence, persistence, and evolution of distinct kinds of financial systems in Europe, as well as the pattern and effects of European financial integration. However, they find there is considerable untapped potential for historical institutionalism as an analytical approach for studying European financial market integration and regulation.

TIME VARYING ASIAN STOCK MARKET INTEGRATION

2015 ◽  
Vol 60 (01) ◽  
pp. 1550006 ◽  
Author(s):  
JONATHAN A. BATTEN ◽  
PETER MORGAN ◽  
PETER G. SZILAGYI
Keyword(s):  
Asset Pricing ◽  
Economic Reform ◽  
Financial Market ◽  
Market Integration ◽  
Time Varying ◽  
Stock Market Integration ◽  
Financial Market Integration ◽  
International Stock Markets ◽  
The Impact ◽  
Variance Structure

We employ an asset pricing framework with varying estimation lengths to show that there has been an increasing degree of integration between Asian and international stock markets, but very little with Japan. This finding is consistent with prior studies and highlights the impact of recent regulatory and economic reform undertaken throughout the region. Our results show that instability in the asset variance structure underpins the observed varying degrees of financial market integration. In particular, modeling integration using shorter estimation periods helps explain the time varying nature of financial market integration and the benefits that may accrue to international and domestic investors.

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