International Capital Market Linkages: A Synthesis of Prior Literature

Authors

  • Walid M. A. Ahmad Ain Shams University, Egypt

DOI:

https://doi.org/10.32890/ijbf2014.11.3

Keywords:

Market integration, market segmentation, cointegration analysis, asset-pricing models, Vector Error Correction Modeling (VECM)

Abstract

In recent years, financial market integration has become a central theme in international finance literature, due to its important implications for many parties involved. The contribution of research on this topic has been substantial and covered several relevant issues, whether at the micro or macro level. This study presents a detailed review on the literature of capital market integration along with their possible limitations. In addition, a comparison is provided between the different empirical approaches used in investigating the level to which capital markets are integrated. It can be concluded from the literature survey that capital market integration is still a moot point, as the empirical evidence is rather inconclusive. Thus, the potential gains derived from, and limitations of, cross-border diversification are still at the core of the debate; and that perhaps surprisingly this issue is not yet fully resolved.

 

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Published

01-12-2015

Issue

Vol. 11 (2014): International Journal of Banking and Finance (IJBF) Vol. 11, 2014-2015

Section

Articles

How to Cite

Ahmad, W. M. A. (2015). International Capital Market Linkages: A Synthesis of Prior Literature. International Journal of Banking and Finance, 11, 55-80. https://doi.org/10.32890/ijbf2014.11.3

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Harvested 2026-09-07
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Identifiers DOI 10.32890/ijbf2014.11.3 OpenAlex W2914120882