IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Global Financial Crisis and The Integration of Islamic Stock Markets in Developed and Developing Countries

Listed author(s):
  • Salina H. Kassim


    (Department of Economics, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, P. O. Box 10, 50728 Kuala Lumpur, Malaysia)

This study aims to determine the impact of the 2007 global financial crisis on the integration of the Islamic stock markets. Seven Islamic stock markets are selected based on the countries’ level of development and geographical factors. The period of analysis is divided into the pre-crisis period (9 January 2005 to 22 July 2007) and the crisis period (29 July 2007 to 10 January 2010). The methodology of this study relies on the Auto-Regressive Distributed Lag approach and the multi-variate Vector Error Correction Mechanism. The 2007–2008 global financial crisis caused changes in the integration level of the Islamic stock market. Both the level of development and geographical factors are found to have a significant influence on the integration of the Islamic stock markets during the crisis and non-crisis periods. The findings have important bearings on the formulation of financial policies, in which co-integrated Islamic stock markets suggest that there is a need for policy coordination among these markets to mitigate the impacts of financial fluctuations. Financial reforms, including the reduction or removal of trade and investment barriers, will be essential if these countries are to exploit the advantages of financial interdependence.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by Penerbit Universiti Sains Malaysia in its journal Asian Academy of Management Journal of Accounting and Finance.

Volume (Year): 9 (2013)
Issue (Month): 2 ()
Pages: 75-94

in new window

Handle: RePEc:usm:journl:aamjaf00902_75-94
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:usm:journl:aamjaf00902_75-94. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journal Division, Penerbit Universiti Sains Malaysia)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.