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The Integration of Financial Markets: Empirical Evidence from South Asian Countries

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  • Qayyum, Abdul
  • Mohsin, H

Abstract

The study analyzed financial market integration in the five countries of South Asia, Pakistan, India, Bangladesh, Sri Lanka and Nepal. All the variables are found to be integrated of the same order in the case of Pakistan, India and Nepal. But for Bangladesh and Sri Lanka they are of different order. The study used Engle Granger (1987) two step methods to check the long run relationship in the case of three countries. There is no evidence of long run relationship between domestic savings and investments to GDP ratio. Further it is found that Indian financial market is not integrated with the world, while financial markets of other South Asian countries are integrated with the world. However, degree of integration is different for each country.

Suggested Citation

  • Qayyum, Abdul & Mohsin, H, 2005. "The Integration of Financial Markets: Empirical Evidence from South Asian Countries," MPRA Paper 2364, University Library of Munich, Germany, revised 2005.
    • Handle: RePEc:pra:mprapa:2364
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    File URL: https://mpra.ub.uni-muenchen.de/2364/1/MPRA_paper_2364.pdf
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    References listed on IDEAS

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    Cited by:

    1. Dr. Ranjan Dasgupta, 2014. "The Integration of Indian and SAARC Stock Markets – An Empirical Study," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 5(1), pages 09-17, January.
    2. Amar Anwar & Ichiro Iwasaki, 2023. "The Finance–Growth Nexus in Asia: A Meta-Analytic Approach," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 40(01), pages 13-48, March.
    3. Anwar, Amar & Iwasaki, Ichiro, 2022. "The Finance–Growth Nexus inAsia : A Meta-Analytic Approach," CEI Working Paper Series 2022-03, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.

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    More about this item

    Keywords

    Financial Market integration; South Asia; Pakistan; India; Bangladesh; Sri Lanka; Nepal;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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