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Integrated Markets: Economic or Financial Integration?

SSRN Electronic Journal
2019
  • 10
    Citations
  • 2,950
    Usage
  • 6
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    10
    • Citation Indexes
      10
  • Usage
    2,950
    • Abstract Views
      2,561
    • Downloads
      389
  • Captures
    6
  • Ratings
    • Download Rank
      153,486

Article Description

We propose a simple metric to measure two aspects of market integration, namely economic integration (defined as a common cash flow dynamic) and financial integration (defined as a common risk pricing dynamic) and then examine their evolution through time while controlling for volatility. We find that developed (DEV) countries exhibit greater degrees of financial and economic integration than emerging (EMG) markets. While the financial integration gap between these markets remains large throughout the sample period, the EMG economies are catching up with their DEV counterparts in recent years -- their level of economic integration has reached that of DEV countries.

Bibliographic Details

Amir Akbari; Lilian K. Ng; Bruno Solnik

Elsevier BV

Financial Integration; Economic Integration; Cash Flow and Risk Pricing Revisions; Analyst Forecasts

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