International Trade and Stock Market Integration: Evidence from Study of India and Its Major Trading Partners

2019 ◽  
Vol 23 (1) ◽  
pp. 90-109 ◽  
Author(s):  
Ritesh Jayantibhai Patel
Keyword(s):  
International Trade ◽  
Stock Market ◽  
Market Integration ◽  
Stock Market Integration ◽  
Trading Partners

scholarly journals Stock Market Integration of Pakistan with Its Trading Partners: A Multivariate DCC-GARCH Model Approach

2019 ◽  
Vol 11 (2) ◽  
pp. 303 ◽  
Author(s):  
Ahmed Shafique Joyo ◽  
Lin Lefen
Keyword(s):  
Financial Crisis ◽  
Stock Market ◽  
Stock Markets ◽  
Market Integration ◽  
Global Financial Crisis ◽  
The United States ◽  
Positive Sign ◽  
Stock Market Integration ◽  
Trading Partners ◽  
T Distribution

A decade after the global financial crisis, the developments in stock market integration have increased the stability and liquidity of markets, and decreased the diversification benefits for investors. International trade is an important determinant of stock market interdependence. The objective of this study is to analyze the co-movements and the portfolio diversification between the stock markets of Pakistan and its top trading partners, namely China, Indonesia, Malaysia, the United Kingdom, and the United States. We employed Dynamic Conditional Covariance (DCC)-Generalized Autoregressive Conditional Heteroscedasticity (GARCH) methodology with student t-distribution to examine time-varying correlation and volatilities of stock markets of Pakistan and its trading partners. We used Morgan Stanley capital international (MSCI) daily returns data of developed and emerging markets for the period 2005 to 2018. The results of the study highlighted that stock markets of Pakistan and its trading partners were closely integrated during the financial crisis of 2008, while the integration among stock markets decreased substantially after the period of financial crises. Furthermore, the results showed the slow decay process. Therefore, it is a positive sign for the Pakistani and international investors to diversify their portfolio among the stock markets of Pakistan and its trading partners.

Financial Development, International Trade, and Stock Market Integration: Evidence in Six Southeastern Asia Countries

2017 ◽  
pp. 5-17 ◽  
Author(s):  
Tram Hoang Thuy Bich Nguyen ◽  
Anh Huynh Lam
Keyword(s):  
International Trade ◽  
Stock Market ◽  
Financial Development ◽  
Market Integration ◽  
Financial Integration ◽  
Bilateral Trade ◽  
Random Effect ◽  
Trade Integration ◽  
Stock Market Integration ◽  
Integration Degree

Measuring the integration degree of the national stock market is popular in the general globalization trend. This paper applies the measurement method of Chaiporn et al. (2016) to consider the Vietnamese stock market, and five other typical Asian economies in the period from 2000 to 2015. The authors’ method has its foundation in the research of Wälti (2011), An and Zhang (2013) and Dasgupta (2010). The paper adopted the fixed effect and random effect models to measure the impacts of financial development, financial integration and international trade integration to national stock market integration. The research findings revealed the positive affect of financial integration and development on the national stock market’s integration with the global stock market in Vietnam and five other countries. In addition the research found international trade integration does not affect the integrating securities market, possibly because the bilateral trade is too small to impact the bilateral stock market’s integration.

Does trade matter for stock market integration?

2010 ◽  
Vol 27 (1) ◽  
pp. 47-66 ◽  
Author(s):  
Bakri Abdul Karim ◽  
M. Shabri Abd. Majid
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Market Integration ◽  
Financial Integration ◽  
Dynamic Interactions ◽  
Content Type ◽  
Stock Market Integration ◽  
Distributed Lag ◽  
Trading Partners ◽  
The Usa

PurposeThe purpose of this paper is to re‐examine the stock market integration and short‐run dynamic interactions between the Malaysian stock market and the stock markets of its major trading partners (the USA, Japan, Singapore, China and Thailand).Design/methodology/approachWeekly stock indices spanning from January 1992 to May 2008 is analysed using autoregressive distributed lag (ARDL) bound testing approach and vector autoregression (VAR) framework.FindingsStock markets of Malaysia and its major trading partners are found to be integrated. To some extent, it is found that trade does matter for stock market integration. Additional, geographical proximity and close relationship between the countries further contributes towards a greater integration between them. To move forward to a greater financial integration among these countries, trade liberalisation, including reduction or removal of trade and investment barriers would be necessary.Originality/valueThis paper is among the first attempts to use ARDL and VAR frameworks to examine integration among the stock markets of Malaysia and its major trading partners. The findings of the study would shed some empirical lights for the purpose of policy making.

Through the Lens of Recession 2.0: Diversification Dynamics Between the Leading Asian Stock Markets

2021 ◽  
pp. 097226292098395
Author(s):  
Manu K. S. ◽  
Surekha Nayak ◽  
Rameesha Kalra
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Market Integration ◽  
Developing Economies ◽  
Positive Impact ◽  
Global Market ◽  
Stock Market Integration ◽  
Developed Economies ◽  
Market Participants ◽  
Causality Tests

The focus of this article is to analyse the inter-linkages between eight leading stock markets in Asian continent from the period of July 2011 to February 2018. This period holds relevance as this was the time when Recession 2.0 set in, which adversely affected the developed economies; however, the developing economies withstood the crisis without much of an impact. Co-integration and Granger causality tests were conducted to probe the inter-linkages. Study revealed a positive impact on Asian stock market indices collectively on each of the indexes. The highest number of unidirectional causalities was to KOPSI and NIFTY from rest of the stock indices. Results confirmed that no co-integration relationship existed among the selected indices indicating favourable diversification opportunities. Thus, the study fosters global market participants and policymakers to consider the nitty-gritties of stock market integration so as to benefit from international stock market diversification in the Asian region.

Sign in / Sign up

Export Citation Format

Share Document