How close a relationship does a capital market have with other such markets? The case of Taiwan from the Asian financial crisis
Abstract
In assessing how far and how close the relationships are between the Taiwan capital market and other international capital markets in Asian financial case, we examine the co-movement patterns by developing the “unequal variance test”. We find that a closer relationship exists between Taiwan and Hong Kong throughout the sample period than between Taiwan and other Asian countries and the US. It thus appears that adjacent regions with similar backgrounds in terms of their capital markets will reflect price patterns that are more similar to those of Taiwan than those of countries with which Taiwan frequently trades or cooperates.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Pacific-Basin Finance Journal.
Volume (Year): 20 (2012)
Issue (Month): 3 ()
Pages: 349-362
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Web page: http://www.elsevier.com/locate/pacfin
Related research
Keywords: Cointegration; International stock market; Asian financial crisis;Find related papers by JEL classification:
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- F59 - International Economics - - International Relations and International Political Economy - - - Other
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
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