Record Details

Cointegration of Capital Markets in ASEAN-5 Countries

Applied Economics Journal

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Field Value
 
Title Cointegration of Capital Markets in ASEAN-5 Countries
 
Creator Chaiphat, Channarong; Department of International and Business Economics, School of Economics, Bangkok University,Bangkok, 10110
 
Subject C32, F36, G15, P34
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Description Economic integration has become a worldwide phenomenon. In 2015, the integration of the ASEAN community will officially be implemented. This integration is the third degree of the economic integration which is so-called common market.It will allow free mobilization of supplies, product, services and labour within the member countries. According to optimum currency area, the participant countries sharing a single currency need to posses synchronicity of the economic variables. This article explores the synchronicity of capital variables in ASEAN countries using data from securities price index of 5 ASEAN member countries: Indonesia, Malaysia, the Philippines, Singapore and Thailand from January 4, 2010 to October 31, 2013. Moreover, the conintegration as well as the impulse response function were also calculated and analyzed. The findings reveal that the securities price index of the 5 ASEAN member countries are cointegrated. Furthermore, the analysis of the impulse response function also turns out to be synchronous. This study supports the possibility of setting up the ASEAN securities market to raise funding for business sectors in the ASEAN countries and to upgrade the stock market of the ASEAN countries to be internationally competitive.
 
Publisher The Center for Applied Economics Research (CAER)
 
Contributor —
 
Date 2016-05-20
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.tci-thaijo.org/index.php/AEJ/article/view/57236
 
Source Applied Economics Journal; Vol 21, No 1 (2014): June; 42-58
0858-9291
 
Relation http://www.tci-thaijo.org/index.php/AEJ/article/view/57236/47440
 
Rights Copyright (c) 2016 Applied Economics Journal
http://creativecommons.org/licenses/by-nc-nd/4.0