Research Article | OPEN ACCESS
Capital Markets Integration: The Case of Select South Asia Markets
1V. Srinivasa Kumar, 1R. Renganathan and 2P.K. Mishra
1School of Management, SASTRA University, Thanjavur, India
2School of Humanities and Social Sciences, Central University of Jharkhand, Ranchi, India
Research Journal of Applied Sciences, Engineering and Technology 2015 10:819-823
Received: October 29, 2014 | Accepted: December 27, 2014 | Published: April 05, 2015
Abstract
In these days of globalization, liberalization and IT, nations have become mutually dependent across the globe. The volume of merchandise transactions as well as international capital mobility has been improved. The investors, both domestic and international, are able to optimize portfolio diversification through multi-country investments. Emerging market economies are removing the reins of investment and introduce investor responsive policies to draw overseas finance in the form of FDI or equity participation. Thus, free and perfect capital mobility has become the important feature of highly integrated financial markets. In this context we investigated the degree and direction of capital market integration among select South Asian countries. We found that the markets have long-run interdependency among themselves and the short-run dynamics is significant in few cases. Such findings will keep much relevance for managing international portfolios.
Keywords:
Capital markets , cointegration , market integration , South Asia,
Competing interests
The authors have no competing interests.
Open Access Policy
This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Copyright
The authors have no competing interests.
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ISSN (Online): 2040-7467
ISSN (Print): 2040-7459 |
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