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Stock Market Integration & Volatility Spillover: Evidence from Pakistan & its Major Trading Partners

Thesis Info

Access Option

External Link

Author

Muhammad Shafique Khan

Institute

Virtual University of Pakistan

Institute Type

Public

City

Lahore

Province

Punjab

Country

Pakistan

Thesis Completing Year

2015

Thesis Completion Status

Completed

Subject

Software Engineering

Language

English

Link

http://vspace.vu.edu.pk/detail.aspx?id=101

Added

2021-02-17 19:49:13

Modified

2024-03-24 20:25:49

ARI ID

1676720967344

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This study examined the stock market integration and volatility spillover among Pakistan and its major trading partners for the period July 2000 to June 2014. Pakistan?s major trading partners included in this study are United States of America, Japan, India, China, Malaysia, United Kingdom and Germany. Therefore, the variables of this study are the selected stock market of respective trading partners i.e. India (Bombay stock exchange), Indonesia (JSX), China (SSE), USA (NYSC), Japan (Nikkei), Germany (DAX) and UK (FTSE. Moreover, Johansen and Juselius. Co-integration test was applied to investigate integration among all stock markets. Vector Error Correction Model and granger causality tests were also used. However, to investigate the volatility spillover GARCH and EGRACH techniques were used.The results of co-integration showed that, there is integration among the markets. The result finds evidence of one long run association-ship between the selected stock markets.There is uni-directional granger cause from DAX, FTSE, BSE, NEKKEI and NYSE to KSE. Overall, the result of above test does not show any bidirectional relationship among stock market of selected countries.
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