MEAN AND VOLATILITY SPILLOVER ANALYSIS AS A PROXY FOR BRIC INTEGRATION

This dissertation examines the mean and volatility spillover effects of BRIC equity indexes and regional and global equity indexes as a proxy for integration. Spillover effects are measured using a two-step GARCH process as set out by Bhar & Nikolova (2007) using the standardised residuals of...

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Main Author: Samuel, Andrews
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2014
Online Access:https://eprints.nottingham.ac.uk/27247/
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author Samuel, Andrews
author_facet Samuel, Andrews
author_sort Samuel, Andrews
building Nottingham Research Data Repository
collection Online Access
description This dissertation examines the mean and volatility spillover effects of BRIC equity indexes and regional and global equity indexes as a proxy for integration. Spillover effects are measured using a two-step GARCH process as set out by Bhar & Nikolova (2007) using the standardised residuals of the regional and global equity indexes in the mean and variance equations of BRIC equity returns. GARCH (1, 1), GARCHM (1, 1) and EGARCH (1, 1) models are all used to examine spillover effects. The time period between September 1995 and June 2014 is examined, with two periods considered a pre-crisis period, 01/09/1995 - 21/02/2007, and a post-crisis period, 22/02/2007 – 30/06/2014. By examining these two period this dissertation examines changes in integration through spillover effects between BRIC countries, their respective regions and the world. The results find that mean spillovers have increased between BRIC countries and the world while they have decreased with regions. This indicates that the BRIC equity price creation process has shifted away from regional influences towards global influences. While the changes between the pre-crisis and post-crisis period of volatility spillovers provided mixed results
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spelling nottingham-272472018-01-06T03:52:01Z https://eprints.nottingham.ac.uk/27247/ MEAN AND VOLATILITY SPILLOVER ANALYSIS AS A PROXY FOR BRIC INTEGRATION Samuel, Andrews This dissertation examines the mean and volatility spillover effects of BRIC equity indexes and regional and global equity indexes as a proxy for integration. Spillover effects are measured using a two-step GARCH process as set out by Bhar & Nikolova (2007) using the standardised residuals of the regional and global equity indexes in the mean and variance equations of BRIC equity returns. GARCH (1, 1), GARCHM (1, 1) and EGARCH (1, 1) models are all used to examine spillover effects. The time period between September 1995 and June 2014 is examined, with two periods considered a pre-crisis period, 01/09/1995 - 21/02/2007, and a post-crisis period, 22/02/2007 – 30/06/2014. By examining these two period this dissertation examines changes in integration through spillover effects between BRIC countries, their respective regions and the world. The results find that mean spillovers have increased between BRIC countries and the world while they have decreased with regions. This indicates that the BRIC equity price creation process has shifted away from regional influences towards global influences. While the changes between the pre-crisis and post-crisis period of volatility spillovers provided mixed results 2014 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/27247/1/PRINT_VERSION_DISSERTATION.pdf Samuel, Andrews (2014) MEAN AND VOLATILITY SPILLOVER ANALYSIS AS A PROXY FOR BRIC INTEGRATION. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Samuel, Andrews
MEAN AND VOLATILITY SPILLOVER ANALYSIS AS A PROXY FOR BRIC INTEGRATION
title MEAN AND VOLATILITY SPILLOVER ANALYSIS AS A PROXY FOR BRIC INTEGRATION
title_full MEAN AND VOLATILITY SPILLOVER ANALYSIS AS A PROXY FOR BRIC INTEGRATION
title_fullStr MEAN AND VOLATILITY SPILLOVER ANALYSIS AS A PROXY FOR BRIC INTEGRATION
title_full_unstemmed MEAN AND VOLATILITY SPILLOVER ANALYSIS AS A PROXY FOR BRIC INTEGRATION
title_short MEAN AND VOLATILITY SPILLOVER ANALYSIS AS A PROXY FOR BRIC INTEGRATION
title_sort mean and volatility spillover analysis as a proxy for bric integration
url https://eprints.nottingham.ac.uk/27247/