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Interdependence of Nordic and Baltic Stock Markets

  • Ulf Nielsson


    (Columbia University, Department of Economics)

The interdependence of the Nordic and Baltic stock markets is explored in lightof increased merger activity of stock exchanges over the sample period, 1996–2006. Theresults show surprisingly little interdependence between the Nordic and Baltic stock indices.In the short run, the response of each market to a shock in another is insignificant.In the longer term there is limited evidence of integration and only weak indication ofconvergence within the sample period. The stock markets seem no more integrated thanthey were at the outset of recent merger activity, suggesting that the levels of cooperationbetween the Nordic and Baltic exchanges have not been deep enough to produce increasedinterdependence.

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Article provided by Baltic International Centre for Economic Policy Studies in its journal Baltic Journal of Economics.

Volume (Year): 6 (2007)
Issue (Month): 2 (January)
Pages: 9-28

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Handle: RePEc:bic:journl:v:6:y:2007:i:2:p:9-28
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