ECONOMIC INTEGRATION AND INVESTMENT OPPORTUNITIES: A STUDY ON ASEAN+3 COUNTRIES

Md. Saifur Rahman () and Farihana Shahari ()
Additional contact information
Md. Saifur Rahman: College of Business, RMIT University, Melbourne, Australia
Farihana Shahari: Department of Finance, Faculty of Economics and Management Science, International Islamic University, Malaysia

Review of Economic and Business Studies, 2020, issue 25, 69-91

Abstract: This paper aims to investigate the investment opportunities in ASEAN+3 economies following the market liberalization in 1980s and 1990s. The estimation process is executed by using stock market indices and by employing Johansen Cointegration, VECM and Impulse response function. Member economies of ASEAN+3 are segmented based on income level in order to observe the market dominance of developed economy on that of developing economies. The dynamic findings indicate the followings: 1) the capital market liberalization improves the market transparency, thus to the favor of the foreign investment, 2) The diversification benefits of portfolio investment in APT regional financial markets squeezed, 3) both the higher and lower income economies have equal investment opportunities, and finally, 4) the financial markets of ASEAN+3 become excellent investment region. This study offers great policy implications for the regional policy makers and both foreign and local investors.

Keywords: financial market; investment opportunity; cointegration analysis; global investors (search for similar items in EconPapers)
JEL-codes: F1 F3 G1 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://rebs.feaa.uaic.ro/articles/pdfs/296.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aic:revebs:y:2020:j:25:rahmans

DOI: 10.1515/rebs-2020-0104

Access Statistics for this article

More articles in Review of Economic and Business Studies from Alexandru Ioan Cuza University, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Sireteanu Napoleon-Alexandru ().