Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

Krishna Reddy Chittedi ¹

Affiliations
1 Institute of Management Technology, Hyderabad 501218, Andhra Pradesh, IN

Abstract

This study analyzes not only the linkages that exist among the BRIC countries, but also those between Brazil, Russia, India and China (BRIC) markets and major developed markets (USA, UK and Japan). The study looks at closing stock prices from January 1997 to June 2010 using Unit ischolar_mains, Granger causality, Cointegration and Error correction mechanism. The results of the study are somewhat mixed. The evidence indicates that the BRIC economies move partially with the markets of other developed countries and also among themselves. The lack of strong links among BRIC markets and between their counterparts in developed economies presents an opportunity for portfolio diversification.

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