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Which islamic equity market is the leading one in Southeast Asia ? evidence from some select equity markets

Author

Listed:
  • Ariffian, Suffian
  • Masih, Mansur

Abstract

Islamic finance has been growing well around the globe since the subprime crisis of 2007-2008. The Southeast Asia is one of the top areas of growth of Islamic finance but there has not been any research done yet as to which Islamic equity market has been the leading one in the Southeast Asia. This study makes an attempt to fill in that gap. In particular this study asks the following questions:(i)which Islamic equity market is the leading one in Southeast Asia ? (ii) whether the international and conventional equity markets had any bearing on the Islamic equity markets in South East Asia and (iii) which Islamic equity index in South East Asia could be used as the benchmark index? Our findings tend to indicate that (i) amongst the South East Asia countries, Malaysia is relatively the most leading Islamic equity market (ii) the international and conventional markets appear to have a significant impact on the Islamic markets in Southeast Asia (iii) for an investor interested in Islamic equity investment in South East Asia region, he/she could use the Malaysian Islamic market as the benchmark index.

Suggested Citation

  • Ariffian, Suffian & Masih, Mansur, 2018. "Which islamic equity market is the leading one in Southeast Asia ? evidence from some select equity markets," MPRA Paper 101873, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:101873
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    References listed on IDEAS

    as
    1. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
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    3. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    4. Wongbangpo, Praphan & Sharma, Subhash C., 2002. "Stock market and macroeconomic fundamental dynamic interactions: ASEAN-5 countries," Journal of Asian Economics, Elsevier, vol. 13(1), pages 27-51.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Islamic equity markets; Southeast Asia; VECM; VDC;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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