Volume Based Measure of Financial Integration and Its Determinants in Select SAARC Countries

Authors

  • Vineet Srivastava
  • Arup Chattopadhyay

DOI:

https://doi.org/10.33516/rb.v42i2.144-152p

Keywords:

Financial Integration, International Investment Position, IFIGDP, GEQGDP, Panel Regression, Pooled Regression, Cointegration.

Abstract

This study aims to gauge the financial integration of India, Pakistan, Bangladesh and Maldives using a volume based approach and tries to identify variables which could explain their integration and the co-movement of their integration indices. The study establishes that different indicators of financial integration of the countries concerned moves in different directions over time. While equity based measure of financial integration significantly increases over time, its trade based counterpart registers a sharp downward trend; on the other hand, its another measure IFIGDP does not show any significant trend. Using panel regression technique we find that trade openness, financial depth and GDP levels have a significant influence on the financial integration of countries. Further, on the basis of cointegration analysis we find significant co-movement of equity based integration measure among the selected countries, India, Bangladesh and Pakistan.

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Published

2016-07-01

How to Cite

Srivastava, V., & Chattopadhyay, A. (2016). Volume Based Measure of Financial Integration and Its Determinants in Select SAARC Countries. Research Bulletin, 42(2), 144–152. https://doi.org/10.33516/rb.v42i2.144-152p

Issue

Volume 42, Issue 2, July 2016

Section

Articles
Crossref
Scopus
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Europe PMC

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