IDEAS home Printed from https://ideas.repec.org/a/sae/padigm/v12y2008i2p93-105.html
   My bibliography  Save this article

Decoupling Theory: A Study of Global Markets in the Present Era of Volatility

Author

Listed:
  • Amarjeet S. Khalsa

Abstract

It is commonly remarked that world markets catch cold when the US market sneezes. In this context what happened in the year 2000 has been well recorded in the chronicles of stock exchanges. Steep fall in NASDAQ resulted in impacting Bombay Stock Exchange Sensex as well as most South-East Asian Markets. The phenomenon of global stock market contagion is now familiar and has become more pronounced in recent years apparently because of the rapid global economic integration. This paper reports a study to find out if there is a correlation between Indian and Global stock markets and to further find out which market affects the Indian market maximum. In the context of the study, the paper examines the emerging concept of decoupling theory, which believes that because of strong GDP growth of countries as China and India, the stock markets of these countries will remain bullish even when there is recession in the US. The study presents an overall picture that although there is no perfect correlation, stock indices of Hong Kong, Singapore, Taiwan, London, NASDAQ and Brazil had more impact on Indian index.

Suggested Citation

  • Amarjeet S. Khalsa, 2008. "Decoupling Theory: A Study of Global Markets in the Present Era of Volatility," Paradigm, , vol. 12(2), pages 93-105, July.
    • Handle: RePEc:sae:padigm:v:12:y:2008:i:2:p:93-105
    DOI: 10.1177/0971890720080210
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0971890720080210
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0971890720080210?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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:sae:padigm:v:12:y:2008:i:2:p:93-105. 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: SAGE Publications (email available below). General contact details of provider: .

    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.