Local Stock Market Integration with International Gold and Oil Price

We look for the integration of Bangladesh Stock Market with international gold and oil price using most recent monthly data set from January 2003 to December 2020 (2003m1-2020m12). We employ the bounds-testing approach to cointegration between stock market index (DSEX) and international gold and oil price and eventually find an integration and dynamic significant impact of international gold and oil price on DSEX in the long and short-run. We discuss the important policy implications of the dynamic impact of international gold and oil price on stock market index.

Through the Lens of Recession 2.0: Diversification Dynamics Between the Leading Asian Stock Markets

The focus of this article is to analyse the inter-linkages between eight leading stock markets in Asian continent from the period of July 2011 to February 2018. This period holds relevance as this was the time when Recession 2.0 set in, which adversely affected the developed economies; however, the developing economies withstood the crisis without much of an impact. Co-integration and Granger causality tests were conducted to probe the inter-linkages. Study revealed a positive impact on Asian stock market indices collectively on each of the indexes. The highest number of unidirectional causalities was to KOPSI and NIFTY from rest of the stock indices. Results confirmed that no co-integration relationship existed among the selected indices indicating favourable diversification opportunities. Thus, the study fosters global market participants and policymakers to consider the nitty-gritties of stock market integration so as to benefit from international stock market diversification in the Asian region.

Cross-Country Stock Market Integration and Portfolio Diversification Opportunities Evidence from Developed, Emerging and Frontier Countries

This study examines the stock market integration in cross-regional countries of developed, emerging, and frontier markets based on low correlation. The objective of the study is to identify the diversification opportunities and link between correlation and integration among country-level stocks. For this purpose, we select 62 countries from all three classifications of developed, emerging, and Frontier Markets. We constructed portfolios by selecting least 5 correlated countries denoted with Pjt in which each country has a correlation of less than .10 with base country Pit. Thirty-two countries fulfill the criteria of low correlation; 7, 13 and 12 from developed, emerging and frontier markets, respectively. Panel co-integration and VECM are applied to test the stock market integration and long & short-run linkages between country-level portfolios designed based on low correlation criteria. After conditioning for oil price movements, S&P 500 and exchange rate, we found Canada, France and Germany from developed category; Chile, Colombia, Greece, South Korea, Malaysia, Pakistan and Philippine from emerging category; and Bahrain, Jordan, Kuwait, Morocco, and Sri Lanka from frontier category have long-run diversification opportunities. Countries including; Canada and Italy from developed category; Argentina, Chile, China, Colombia, India, Indonesia, South Korea, Mexico and the Philippine from emerging category; and Bahrain, Kuwait, Morocco, Nigeria, and Tunisia from emerging category have short-run diversification opportunities.

FINANCING THE DEVELOPMENT OF TECHNOLOGICAL ENTERPRISES IN THE REPUBLIC OF KAZAKHSTAN

В статье изложен ход и результаты исследования экономических отношений, возникающих в процессе финансирования казахстанских технологических предприятий. Автором, посредством применения соответствующих общелогических и частных экономических методовпроведения исследований, решена научная задача по формированию стратегии мобилизации и использования финансовых ресурсов для эффективного развития технологической промышленности Республики Казахстан. Комплекс исследовательского инструментария включает такие методы, как:формально-логический анализ,абстрагирование, графическийанализи экономико-статистический анализ.Каждыйиз методов использовался aдeквaтнoeгoфункциoнaльным вoзмoжнocтям и paзpeшaющимcпocoбнocтям.Это позволило автору последовательно peшатьcooтвeтcтвующиеэтaпные зaдaчииccлeдoвaния. Вначале изучить экономическую сущность системы финансирования развития казахстанских технологических предприятий,затем обосновать необходимость государственного регулирования данной системы. Далее определить роль и место интернет-трейдинга в системе экономических отношений между населением и участниками финансового рынка, и в завершенииразработать теоретическую модель финансирования развития технологических предприятий Казахстана, адаптированную под современные экономические реалии Республики. Полученные выводы исследованияпредставляют собойпотенциальную теоретико-методическую базу для использованиясоответствующими государственными органами при разработке и внесении изменений и дополнений в законодательные и нормативные акты, регулирующие вопросымобилизации и использования финансовых ресурсов для развития технологических предприятий Республики Казахстан. technologyenterprise, financingmethod, mobilizationstrategy, financial resources, innovative infrastructure, technology cluster, stock market, integration of education, science and business, improving the competitiveness of the enterprise The article describes the course and results of the study of economic relations that arise in the process of financing Kazakhstan's technological enterprises. The author, through the use of appropriate General and private economic methods of research, solved the scientific problem of forming a strategy for the mobilization and use of financial resources for the effective development of the technological industry of the Republic of Kazakhstan. The complex of research tools includes such methods as: formal logical analysis, abstraction, graphical analysis, and economic and statistical analysis. Each of the methods was used adequately for the ero functionality and resolution capabilities. This allowed the author to consistently solve the corresponding stage tasks of the study. First, to study the economic essence of the system of financing the development of Kazakhstan's technological enterprises, then to justify the need for state regulation of this system. Next, determine the role and place of Internet trading in the system of economic relations between the population and financial market participants, and finally develop a theoretical model for financing the development of technological enterprises in Kazakhstan, adapted to the current economic realities of the Republic. The findings of the study represent a potential theoretical and methodological basis for use by relevant state bodies in the development and introduction of amendments and additions to legislative and regulatory acts regulating the mobilization and use of financial resources for the development of technological enterprises in the Republic of Kazakhstan.

Measuring Co-Movements and Linkages between Nigeria and the UAE Stock Exchanges: Is there Opportunity for Portfolio Building?

Purpose: The main objective of this study is to examine the relationship between Nigerian Stock Exchange and Dubai stock exchange with the aim of finding out the direction of movements between their respective indices. Approach/Methodology/Design: The methodology adopted for the analysis is ARDL cointegration model and the Generalized Method of Moment (GMM). This is because of their known efficiency in detecting patterns between variables. Findings: The result of the short-run analysis using GMM shows that there is existence of short-run causality between the Dubai financial market (DFM) and the Nigerian stock exchange (NSE). Thus, for investors looking for short- run arbitrage opportunity between the markets, they shall look elsewhere. But, the result of bound testing has shown lack of cointegration between the two markets. This is a sign of existence of opportunities for portfolio diversification between Nigeria stock exchange and Dubai financial market, since the two markets are not cointegrated in the long-run. Practical Implications: The study helps bridge the empirical literature gap in stock market integration and portfolio diversification with reference to the Nigeria and UAE. It will, therefore, guide local and foreign investors with interest in Nigeria and UAE Stock Exchanges. It will also guide Nigerian and UAE policy makers to understand the market better, especially as it concerns financial contagion. Originality/value: This study provides further evidence on stock market integration in emerging markets. New researches shall adopt different methodology such as use of volatility tracking models to measure volatility linkage between the markets.

Cross-Country Stock Market Integration and Portfolio Diversification Opportunities Evidence from Developed, Emerging and Frontier Countries

This study examines the stock market integration in cross-regional countries of developed, emerging, and frontier markets based on low correlation. The objective of the study is to identify the diversification opportunities and link between correlation and integration among country-level stocks. For this purpose, we select 62 countries from all three classifications of developed, emerging, and Frontier Markets. We constructed portfolios by selecting least 5 correlated countries denoted with Pjt in which each country has a correlation of less than .10 with base country Pit. Thirty-two countries fulfill the criteria of low correlation; 7, 13 and 12 from developed, emerging and frontier markets, respectively. Panel co-integration and VECM are applied to test the stock market integration and long & short-run linkages between country-level portfolios designed based on low correlation criteria. After conditioning for oil price movements, S&P 500 and exchange rate, we found Canada, France and Germany from developed category; Chile, Colombia, Greece, South Korea, Malaysia, Pakistan and Philippine from emerging category; and Bahrain, Jordan, Kuwait, Morocco, and Sri Lanka from frontier category have long-run diversification opportunities. Countries including; Canada and Italy from developed category; Argentina, Chile, China, Colombia, India, Indonesia, South Korea, Mexico and the Philippine from emerging category; and Bahrain, Kuwait, Morocco, Nigeria, and Tunisia from emerging category have short-run diversification opportunities.