TY  - JOUR
TT  - Financial Markets Integration: Appraising the Developed and Emerging Markets Nexus
AU  - Onakoya, Adegbemi Babatunde
AU  - Seyingbo, Victor Adedotun
PY  - 2017
DA  - September
JF  - International Journal of Economics and Financial Issues
JO  - IJEFI
PB  - İlhan ÖZTÜRK
WT  - DergiPark
SN  - 2146-4138
SP  - 613
EP  - 624
VL  - 7
IS  - 3
KW  - Financial Markets Integration
KW  - Stock market spill overs
KW  - Spill over index
KW  - VAR
KW  - Volatility transmission
N2  - While many economists see financial globalization (financial markets integration) as critical to the development and strengthening of middle-income emerging markets, many have opined that financial integration carries huge risk that far outweighs potential benefits for most middle-income countries. This study therefore investigated the interdependence between emerging markets and developed markets. The study deployed the Diebold and Yilmaz methodological approach to investigate spill-over between markets. The research concluded that there exists interdependence between developed markets and emerging markets. The net benefits argument of financial markets held. Given increasing globalization none of the markets, whether developed or emerging is immune from the dynamics of global markets with consequential beneficial and deleterious impacts. The study recommended that emerging markets should institute reforms capable of enhancing a beneficial involvement in the global integration of financial markets. Macroeconomic reform is crucial if economies will benefit from financial markets integration. Exchange rate, inflation, fiscal deficits policies must be such that communicates macroeconomic stability, as this in turn suggests an investible territory to investors.
UR  - https://dergipark.org.tr/tr/pub/ijefi/issue//354308
L1  - https://dergipark.org.tr/tr/download/article-file/365441
ER  -