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Showing posts with the label financial integration

The Changing Face of Pakistan’s Economic Relations with India and Bangladesh: Prospects and Challenges

Abstract Historic links, economic interactions and geostrategic interests make Pakistan, India and Bangladesh vital to one another. The geographic conditions, economic interactions, trade links, ethnocultural proximity and historical linkages provide a plethora of opportunities for close, cordial and cooperative relations among the three countries. This study discusses the current rebirth of economic relations between Pakistan and India and the shift of Pakistani investors to Bangladesh. The extant literature presents a profound discussion on the political, geographical, historical, economic and legal relationships between these countries. However, this paper addresses some other theoretical and economic aspects, such as investors’ behaviour towards investment, and financial integration, which are imperative where economic and trade ties are concerned. The paper employs the archival method of reviewing related literature (theoretical and empirical) and organising and presenting some ...

Emerging Trends of Financial Markets Integration: Evidence from Pakistan

ABSTRACT This study investigates extensively the integration of various segments of financial markets (i.e. money market, lending and deposit market, exchange rate market, and capital market) both domestically and internationally. Cointegration approach is employed in the study to find out long term relationship among the variables. Data are on a monthly interval for the period spreads over 2001 to 2010. The results show no evidence of cointegration between money market and exchange rate market and between capital market and exchange rate market of Pakistan. On the other hand, international financial markets integration is also investigated and the findings revealed that domestic money market rates of Pakistan and USA are not cointegrated. Whereas, an evidence of cointegration between capital markets of Pakistan and USA is found in this study. Keywords:  Financial Integration; Money Market; Capital Market; Exchange Rate Market; Cointegration. Author: Irfan Ahmed Journal of...