Does trade matter for stock market integration?

Purpose – The purpose of this paper is to re-examine the stock market integration and short-run dynamic interactions between the Malaysian stock market and the stock markets of its major trading partners (the USA, Japan, Singapore, China and Thailand). Design/methodology/approach – Weekly stoc...

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Main Authors:	Abdul Karim, Bakri, Abd. Majid, M. Shabri
Format:	Article
Language:	English
Published:	Emerald Group Publishing Limited 2010
Subjects:	HF Commerce
Online Access:	http://irep.iium.edu.my/20829/ http://irep.iium.edu.my/20829/ http://irep.iium.edu.my/20829/1/does_trade_matter_for_stock_market.pdf

id	iium-20829
recordtype	eprints
spelling	iium-208292012-02-21T11:33:01Z http://irep.iium.edu.my/20829/ Does trade matter for stock market integration? Abdul Karim, Bakri Abd. Majid, M. Shabri HF Commerce Purpose – The purpose of this paper is to re-examine the stock market integration and short-run dynamic interactions between the Malaysian stock market and the stock markets of its major trading partners (the USA, Japan, Singapore, China and Thailand). Design/methodology/approach – Weekly stock indices spanning from January 1992 to May 2008 is analysed using autoregressive distributed lag (ARDL) bound testing approach and vector autoregression (VAR) framework. Findings – Stock markets of Malaysia and its major trading partners are found to be integrated. To some extent, it is found that trade does matter for stock market integration. Additional, geographical proximity and close relationship between the countries further contributes towards a greater integration between them. To move forward to a greater financial integration among these countries, trade liberalisation, including reduction or removal of trade and investment barriers would be necessary. Originality/value – This paper is among the first attempts to use ARDL and VAR frameworks to examine integration among the stock markets of Malaysia and its major trading partners. The findings of the study would shed some empirical lights for the purpose of policy making. Emerald Group Publishing Limited 2010 Article PeerReviewed application/pdf en http://irep.iium.edu.my/20829/1/does_trade_matter_for_stock_market.pdf Abdul Karim, Bakri and Abd. Majid, M. Shabri (2010) Does trade matter for stock market integration? Studies in Economics and Finance, 27 (1). pp. 47-66. ISSN 1086-7376 http://www.emeraldinsight.com/journals.htm?articleid=1845935
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF Commerce
spellingShingle	HF Commerce Abdul Karim, Bakri Abd. Majid, M. Shabri Does trade matter for stock market integration?
description	Purpose – The purpose of this paper is to re-examine the stock market integration and short-run dynamic interactions between the Malaysian stock market and the stock markets of its major trading partners (the USA, Japan, Singapore, China and Thailand). Design/methodology/approach – Weekly stock indices spanning from January 1992 to May 2008 is analysed using autoregressive distributed lag (ARDL) bound testing approach and vector autoregression (VAR) framework. Findings – Stock markets of Malaysia and its major trading partners are found to be integrated. To some extent, it is found that trade does matter for stock market integration. Additional, geographical proximity and close relationship between the countries further contributes towards a greater integration between them. To move forward to a greater financial integration among these countries, trade liberalisation, including reduction or removal of trade and investment barriers would be necessary. Originality/value – This paper is among the first attempts to use ARDL and VAR frameworks to examine integration among the stock markets of Malaysia and its major trading partners. The findings of the study would shed some empirical lights for the purpose of policy making.
format	Article
author	Abdul Karim, Bakri Abd. Majid, M. Shabri
author_facet	Abdul Karim, Bakri Abd. Majid, M. Shabri
author_sort	Abdul Karim, Bakri
title	Does trade matter for stock market integration?
title_short	Does trade matter for stock market integration?
title_full	Does trade matter for stock market integration?
title_fullStr	Does trade matter for stock market integration?
title_full_unstemmed	Does trade matter for stock market integration?
title_sort	does trade matter for stock market integration?
publisher	Emerald Group Publishing Limited
publishDate	2010
url	http://irep.iium.edu.my/20829/ http://irep.iium.edu.my/20829/ http://irep.iium.edu.my/20829/1/does_trade_matter_for_stock_market.pdf
first_indexed	2023-09-18T20:31:29Z
last_indexed	2023-09-18T20:31:29Z
_version_	1777408765407002624

Does trade matter for stock market integration?

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