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The integration of the Pakistani equity market with international equity markets: an investigation
Author(s) -
Husain Fazal,
Saidi Reza
Publication year - 2000
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/(sici)1099-1328(200003)12:2<207::aid-jid636>3.0.co;2-z
Subject(s) - equity (law) , equity capital markets , market integration , private equity fund , business , economics , financial economics , finance , private equity , political science , macroeconomics , law
This paper investigates the integration of the equity market in Pakistan with those in other countries. In this context, seven major equity markets, that is, the markets of USA, UK, France, Germany, Japan, Hong Kong, and Singapore were selected for the analysis. The integration was examined through co‐integration analysis using weekly country indices from January 1988 to December 1993. The analysis provides little evidence of integration of the Pakistani market with international markets. The low level of integration qualifies the Pakistani market as an attractive diversification tool for international portfolio managers. Copyright © 2000 John Wiley & Sons, Ltd.