Regional Financial Integration in the GCC

Raphael Espinoza, Oral Williams and Ananthakrishnan Prasad

No 2010/090, IMF Working Papers from International Monetary Fund

Abstract: We investigate the extent of regional financial integration in the member countries of the Gulf Cooperation Council. The limited volume data available suggests that regional integration is non-negligible. Bahrain and Kuwait investments especially are oriented towards the region. The development of stock markets in the region will also improve the extent of financial integration. Interest rate data shows that convergence exists and that interest rate differentials are relatively short-lived-especially compared to the ECCU, another emerging market region sharing a common currency. Equities data using cross-listed stocks confirms that stock markets are fairly integrated compared to other emerging market regions, although financial integration is hampered by market illiquidity.

Keywords: WP; GCC; Total GCC; price (search for similar items in EconPapers)
Pages: 33
Date: 2010-04-01
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Citations: View citations in EconPapers (10)

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Journal Article: Regional financial integration in the GCC (2011)
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