IDEAS home Printed from https://ideas.repec.org/a/aic/revebs/y2018j21zahidr.html
   My bibliography  Save this article

Impact Of Safta On Capital Market Integration Of South Asia: Evidence From Cointegration Analysis

Author

Listed:
  • R. M. AMMAR ZAHID

    (Izmir University of Economics, Izmir, Turkey, Crossponding)

  • MUZAMMIL KHURSHID

    (University of Central Punjab, Sialkot Campus, Sialkot, Pakistan)

Abstract

Regional Trade agreements (RTAs) are increasing worldwide because of associated economic benefits such as increased cross border investment and trade, development and integration markets. This paper investigates how South Asian Free Trade Agreement (SAFTA) impact on the integration of South Asian capital markets. Weekly data of capital market indices of three countries (India, Pakistan and Sri Lanka) have been analyzed for overall (1998-2017) and two sub periods, 1998-2006 (Pre SAFTA) and 2009-2017 (Post SAFTA). Correlation coefficients, Unit root tests and Johansen and Juselius (JJ) Cointegration technique has been applied to access the integration between the markets. The main findings suggest that integration between the South Asian capital markets has been increased in Post-SAFTA period. The evidence that SAFTA pact results in increased integration of regional capital markets has important implications for investors and policymakers.

Suggested Citation

  • R. M. Ammar Zahid & Muzammil Khurshid, 2018. "Impact Of Safta On Capital Market Integration Of South Asia: Evidence From Cointegration Analysis," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 21, pages 79-96, June.
    • Handle: RePEc:aic:revebs:y:2018:j:21:zahidr
    as

    Download full text from publisher

    File URL: http://rebs.feaa.uaic.ro/articles/pdfs/257.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. R. M. Ammar Zahid & Safia Rafique & Muzammil Khurshid & Wajid Khan & Ikram Ullah, 2024. "Do Women’s Financial Literacy Accelerate Financial Inclusion? Evidence from Pakistan," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4315-4337, March.

    More about this item

    Keywords

    Regional Trade Agreements; SAFTA; Capital Markets; SAARC; unit root test; Cointegration;
    All these keywords.

    JEL classification:

    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G1 - Financial Economics - - General Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aic:revebs:y:2018:j:21:zahidr. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sireteanu Napoleon-Alexandru (email available below). General contact details of provider: https://edirc.repec.org/data/feaicro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.