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Interlinkage of the International Stock Markets


Affiliations
1 Continental Group of Institutes, Fatehgrah Sahib, Punjab, India
2 Govt. Ranbir College, Sangrur, Punjab, India
3 CIET, Jalvehre, Fatehgrah Sahib, Punjab, India
     

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Capital market investors devoid of sufficient investment opportunities in the domestic market look forward to investment in the global markets, to seek the additional benefit of the global diversification. Globalization, liberalization, financial reforms, swelling multilateral relations among the world countries, massive development in the information technology and communication systems and ever-rising trade between the nations, signify the integration of the world markets especially the capital markets. This research work focuses on examining the Interlinkage between the stock markets of the world by applying the Johansen (1988) cointegration framework on the world’s twelve renowned stock price indices belonging to India, US, UK, Singapore, France, Japan, Germany, Brazil, Russia, China, Hong-Kong, and Canada. The study could not validate the strong presence of the Interlinkage among the stock markets of the world.

Keywords

Capital Market, Cointegration, Diversification, Interlinkage.
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  • Interlinkage of the International Stock Markets

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Authors

Pardeep Kumar
Continental Group of Institutes, Fatehgrah Sahib, Punjab, India
Charu Saxena
Govt. Ranbir College, Sangrur, Punjab, India
Mandeep Kaur
CIET, Jalvehre, Fatehgrah Sahib, Punjab, India

Abstract


Capital market investors devoid of sufficient investment opportunities in the domestic market look forward to investment in the global markets, to seek the additional benefit of the global diversification. Globalization, liberalization, financial reforms, swelling multilateral relations among the world countries, massive development in the information technology and communication systems and ever-rising trade between the nations, signify the integration of the world markets especially the capital markets. This research work focuses on examining the Interlinkage between the stock markets of the world by applying the Johansen (1988) cointegration framework on the world’s twelve renowned stock price indices belonging to India, US, UK, Singapore, France, Japan, Germany, Brazil, Russia, China, Hong-Kong, and Canada. The study could not validate the strong presence of the Interlinkage among the stock markets of the world.

Keywords


Capital Market, Cointegration, Diversification, Interlinkage.

References





DOI: https://doi.org/10.17492/focus.v6i1.182826