Regional Integration of Stock Markets in Latin America

Richard Heaney () and Vince Hooper ()
Additional contact information
Richard Heaney: Australian National University, Postal: School of Finance and Applied Statistics, Faculty of Economics and Commerce, ANU, Canberra. Australia
Vince Hooper: University of South Wales, Postal: School of Banking and Finance, University of New South Wales, Sydney, Australia

Journal of Economic Integration, 2002, vol. 17, 745-760

Abstract:

This paper examines the trend towards regionalism upon stock market returns in Latin America. Average correlations with other countries in the region and with the world suggest that the Latin American stock markets have become more regionally integrated over the study period. This finding reflects the growing cooperation between Latin American countries since liberalisation in the early 1990s. Prior to liberalisation, Latin American stock market returns showed greater association with the more developed markets, particularly the USA, than with their closest neighbour. This may have been due to the high dependence upon debt from these developed countries. Analysis highlights the importance of stock market data in helping researchers understand and monitor the regional integration process in Latin America.

Keywords: Regionalism; Time Changing Correlations; Integration (search for similar items in EconPapers)
JEL-codes: F15 F36 G12 G15 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0218

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