Financial Markets Integration: Appraising the Developed and Emerging Markets Nexus
While many economists see financial globalization (financial markets integration) as critical to the development and strengthening of middle-income emerging markets, many have opined that financial integration carries huge risk that far outweighs potential benefits for most middle-income countries....
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2017-09-01
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| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/pub/ijefi/issue/32021/354308?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| _version_ | 1797905670809321472 |
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| author | Adegbemi Babatunde Onakoya Victor Adedotun Seyingbo |
| author_facet | Adegbemi Babatunde Onakoya Victor Adedotun Seyingbo |
| author_sort | Adegbemi Babatunde Onakoya |
| collection | DOAJ |
| description | While many economists see financial globalization (financial markets integration) as critical to the development and strengthening of middle-income emerging markets, many have opined that financial integration carries huge risk that far outweighs potential benefits for most middle-income countries. This study therefore investigated the interdependence between emerging markets and developed markets. The study deployed the Diebold and Yilmaz methodological approach to investigate spill-over between markets. The research concluded that there exists interdependence between developed markets and emerging markets. The net benefits argument of financial markets held. Given increasing globalization none of the markets, whether developed or emerging is immune from the dynamics of global markets with consequential beneficial and deleterious impacts. The study recommended that emerging markets should institute reforms capable of enhancing a beneficial involvement in the global integration of financial markets. Macroeconomic reform is crucial if economies will benefit from financial markets integration. Exchange rate, inflation, fiscal deficits policies must be such that communicates macroeconomic stability, as this in turn suggests an investible territory to investors. |
| first_indexed | 2024-04-10T10:09:03Z |
| format | Article |
| id | doaj.art-71f12f6a57bf4aea836149c0734d1a55 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:09:03Z |
| publishDate | 2017-09-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-71f12f6a57bf4aea836149c0734d1a552023-02-15T16:22:20ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-09-01736136241032Financial Markets Integration: Appraising the Developed and Emerging Markets NexusAdegbemi Babatunde OnakoyaVictor Adedotun SeyingboWhile many economists see financial globalization (financial markets integration) as critical to the development and strengthening of middle-income emerging markets, many have opined that financial integration carries huge risk that far outweighs potential benefits for most middle-income countries. This study therefore investigated the interdependence between emerging markets and developed markets. The study deployed the Diebold and Yilmaz methodological approach to investigate spill-over between markets. The research concluded that there exists interdependence between developed markets and emerging markets. The net benefits argument of financial markets held. Given increasing globalization none of the markets, whether developed or emerging is immune from the dynamics of global markets with consequential beneficial and deleterious impacts. The study recommended that emerging markets should institute reforms capable of enhancing a beneficial involvement in the global integration of financial markets. Macroeconomic reform is crucial if economies will benefit from financial markets integration. Exchange rate, inflation, fiscal deficits policies must be such that communicates macroeconomic stability, as this in turn suggests an investible territory to investors.https://dergipark.org.tr/tr/pub/ijefi/issue/32021/354308?publisher=http-www-cag-edu-tr-ilhan-ozturkfinancial markets integration stock market spill overs spill over index var volatility transmission |
| spellingShingle | Adegbemi Babatunde Onakoya Victor Adedotun Seyingbo Financial Markets Integration: Appraising the Developed and Emerging Markets Nexus International Journal of Economics and Financial Issues financial markets integration stock market spill overs spill over index var volatility transmission |
| title | Financial Markets Integration: Appraising the Developed and Emerging Markets Nexus |
| title_full | Financial Markets Integration: Appraising the Developed and Emerging Markets Nexus |
| title_fullStr | Financial Markets Integration: Appraising the Developed and Emerging Markets Nexus |
| title_full_unstemmed | Financial Markets Integration: Appraising the Developed and Emerging Markets Nexus |
| title_short | Financial Markets Integration: Appraising the Developed and Emerging Markets Nexus |
| title_sort | financial markets integration appraising the developed and emerging markets nexus |
| topic | financial markets integration stock market spill overs spill over index var volatility transmission |
| url | https://dergipark.org.tr/tr/pub/ijefi/issue/32021/354308?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| work_keys_str_mv | AT adegbemibabatundeonakoya financialmarketsintegrationappraisingthedevelopedandemergingmarketsnexus AT victoradedotunseyingbo financialmarketsintegrationappraisingthedevelopedandemergingmarketsnexus |