US, UK and European Stock Market Integration

This paper examines long-run convergence between US, UK and seven European stock markets. We report evidence to suggest that while real short-run diversification gains may occur, in general they tend to be shortlived. However we also find that US and UK markets are relatively less bound to a com...

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Main Authors: Fraser, Patricia, OYEFESO, O.
Format: Journal Article
Published: Wiley-Blackwell Publishing Ltd. 2005
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/22747
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author Fraser, Patricia
OYEFESO, O.
author_facet Fraser, Patricia
OYEFESO, O.
author_sort Fraser, Patricia
building Curtin Institutional Repository
collection Online Access
description This paper examines long-run convergence between US, UK and seven European stock markets. We report evidence to suggest that while real short-run diversification gains may occur, in general they tend to be shortlived. However we also find that US and UK markets are relatively less bound to a common trend, which would imply that increased stock market merger activity, and any transition to the European common currency by the UK, may lead to relatively large stock market adjustments as markets adapt to these institutional changes.
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format Journal Article
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institution Curtin University Malaysia
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last_indexed 2025-11-14T07:45:05Z
publishDate 2005
publisher Wiley-Blackwell Publishing Ltd.
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spelling curtin-20.500.11937-227472017-09-13T13:57:42Z US, UK and European Stock Market Integration Fraser, Patricia OYEFESO, O. stock market integration multivariate cointegration long-run convergence single common stochastic trend permanent and transitory components This paper examines long-run convergence between US, UK and seven European stock markets. We report evidence to suggest that while real short-run diversification gains may occur, in general they tend to be shortlived. However we also find that US and UK markets are relatively less bound to a common trend, which would imply that increased stock market merger activity, and any transition to the European common currency by the UK, may lead to relatively large stock market adjustments as markets adapt to these institutional changes. 2005 Journal Article http://hdl.handle.net/20.500.11937/22747 10.1111/j.0306-686X.2005.00591.x Wiley-Blackwell Publishing Ltd. restricted
spellingShingle stock market integration
multivariate cointegration
long-run convergence
single common stochastic trend
permanent and transitory components
Fraser, Patricia
OYEFESO, O.
US, UK and European Stock Market Integration
title US, UK and European Stock Market Integration
title_full US, UK and European Stock Market Integration
title_fullStr US, UK and European Stock Market Integration
title_full_unstemmed US, UK and European Stock Market Integration
title_short US, UK and European Stock Market Integration
title_sort us, uk and european stock market integration
topic stock market integration
multivariate cointegration
long-run convergence
single common stochastic trend
permanent and transitory components
url http://hdl.handle.net/20.500.11937/22747