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Are Asian Markets Integrated? Evidence for Six Countries Vis-A-Vis Japan

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Listed author(s):
  • Imad Moosa
  • Razzaque Bhatti
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    Abstract

    This paper presents some empirical evidence on the degree of integration between the goods and financial markets of Japan and six Asian countries. The evidence is obtained by testing two international parity conditions using unconventional specifications: uncovered interest parity (UIP) and ex ante purchasing power parity (PPP). The results of cointegration tests are strongly supportive of the two conditions over the period 1980-1994. The paper concludes that Asian goods and financial markets have reached a high level of integration. [G14]

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/10168739700000004
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    Article provided by Taylor & Francis Journals in its journal International Economic Journal.

    Volume (Year): 11 (1997)
    Issue (Month): 1 ()
    Pages: 51-67

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    Handle: RePEc:taf:intecj:v:11:y:1997:i:1:p:51-67
    DOI: 10.1080/10168739700000004
    Contact details of provider: Web page: http://www.tandfonline.com/RIEJ20

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    Cited by:

    1. Zohreh Shirani Fakhr & Seyed Komail Tayebi, 2009. "Determinants of Financial Integration in the East Asia-Pacific Region," Iranian Economic Review, Economics faculty of Tehran university, vol. 14(1), pages 155-173, spring.
    2. Sirichand, Kavita & Vivian, Andrew & Wohar, Mark E., 2015. "Examining real interest parity: Which component reverts quickest and in which regime?," International Review of Financial Analysis, Elsevier, vol. 39(C), pages 72-83.
    3. Tai-Hu Ling, & Venus Khim-Sen Liew & Syed Azizi Wafa Syed Khalid Wafa, 2007. "Real Interest Rates Equalization: The Case of Malaysia and Singapore," The IUP Journal of Monetary Economics, IUP Publications, vol. 0(3), pages 24-37, August.
    4. Dr James Laurenceson, 2003. "Economic Integration Between China And ASEAN," Discussion Papers Series 329, School of Economics, University of Queensland, Australia.
    5. Khan, Muhammad Arshad & Sajid, Muhammad Zubair, 2007. "Integration of Financial Markets in SAARC Countries: Evidence Based on Uncovered Interest rate Parity Hypothesis," MPRA Paper 6751, University Library of Munich, Germany.
    6. Min, Hong-Ghi & McDonald, Judith A. & Choung, Jaeyong, 2003. "Dynamic capital mobility, capital-market risk, and contagion: evidence from seven Asian countries," Japan and the World Economy, Elsevier, vol. 15(2), pages 161-183, April.
    7. Khalid Kisswani & Salah Nusair, 2014. "Nonlinear convergence in Asian interest and inflation rates: evidence from Asian countries," Economic Change and Restructuring, Springer, vol. 47(3), pages 155-186, August.
    8. Hong G. Min, 1998. "Dynamic capita mobility, capital market risk, and exchange rate misalignment : evidence from seven Asian Countries," Policy Research Working Paper Series 2025, The World Bank.
    9. Hong G. Min & McDonald, Judith A., 1999. "Does a thin foreign exchange market lead to destabilizing capital-market speculation in the Asian Crisis countries?," Policy Research Working Paper Series 2056, The World Bank.
    10. Surbhi Jain & N.R. Bhanumurthy, 2005. "Financial markets integration in India," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 12(2), pages 15-32, December.

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