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The Increasing Impact of Spain on the Equity Markets of Brazil, Chile and Mexico

Author

Listed:
  • Andres Rivas

    (Primerica)

  • Rahul Verma

    (University of Houston)

  • Antonio Rodriguez

    (Texas A&M International University [Laredo])

  • Pedro H. Albuquerque

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, ACCELERATION & ADAPTATION)

Abstract

The article examines stock index price responses in Brazil, Chile and Mexico to those in the US, Spain and four European countries during three sub-periods surrounding the neoliberal reforms of the 1990s: 1988 to 1994, 1995 to 1998, and 1999 to 2004, using VAR modeling. It finds that equity markets became more interconnected as countries opened to international trade and capital flows, and that there was an increasing impact of Spain on Latin American equity markets. Stronger economic linkages (more trade and foreign direct investment) between Spain and these countries, specially in Brazil, seem to explain increased equity markets interconnectedness.

Suggested Citation

  • Andres Rivas & Rahul Verma & Antonio Rodriguez & Pedro H. Albuquerque, 2023. "The Increasing Impact of Spain on the Equity Markets of Brazil, Chile and Mexico," Working Papers hal-04111626, HAL.
    • Handle: RePEc:hal:wpaper:hal-04111626
    Note: View the original document on HAL open archive server: https://amu.hal.science/hal-04111626
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Emerging markets; Latin America; Spain; Stock markets interdependence; VAR modeling;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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