Do European Stock Markets Affect Latin American Stock Markets?
Antonio Rodriguez and
Additional contact information
Andrés Rivas: Texas A&M International University
Antonio Rodriguez: Texas A&M International University
Finance from EconWPA
In this study, we examine the response of Latin American stock markets to movements in European stock markets using VAR models. Our results vary depending on the openness of the country in terms of international trade. We find evidence that Latin American stock markets are responsive to changes in the stock market from Spain. Additionally, during the second and third subperiods, Spain has much stronger ties with Brazil, and this might explain why Brazil responds more to the shocks originating from Spain than from France. In conclusion, this study uncovers two important findings. First, Spain influences Latin American markets but these responses are not homogeneous across markets. Second, the influence of Spain has different magnitude in the three subperiods.
Keywords: Emerging Markets; Latin America; Stock Markets Interdependence; VAR (search for similar items in EconPapers)
JEL-codes: F30 G15 O54 C22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cfn, nep-fin, nep-fmk and nep-rmg
Note: Type of Document - pdf; pages: 41
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpfi:0512017
Access Statistics for this paper
More papers in Finance from EconWPA
Series data maintained by EconWPA ().