Citation
(2014), "2013 Awards for Excellence", South Asian Journal of Global Business Research, Vol. 3 No. 1. https://doi.org/10.1108/SAJGBR-03-2014-001
Publisher
:Emerald Group Publishing Limited
2013 Awards for Excellence
Article Type: 2013 Awards for Excellence From: South Asian Journal of Global Business Research, Volume 3, Issue 1
The following articles were selected for this year's Highly Commended Award, South Asian Journal of Global Business Research
"Financial integration in selected South Asian countries"
Anil Perera
Central Bank of Sri Lanka, Colombo, Sri Lanka and Faculty of Business and Economics, Monash University, Caulfield East, Australia
Wickramanayake J.
Faculty of Business and Economics, Monash University, Caulfield East, Australia
Purpose – The purpose of this paper is to examine financial market integration in major South Asian financial markets: Bangladesh, India, Pakistan and Sri Lanka. Also to identify the required policy interactions and structural changes vital for broader economic integration
Design/methodology/approach – This research opted for an empirical study employing
co-integration and causality techniques using a sample of stock and bond market data for major
South Asian countries.
Findings – Empirical results show that both stock and bond returns are co-integrated, indicating
common stochastic trends. Stock market integration appears to be much stronger compared to the
less developed and data deficient bond markets
Research limitations/implications – The study relies on widely cited empirical methodology. However, adopting alternative specifications and also allowing for time variant factors while examining inter-linkages between stock and bond markets seem to be appropriate for robustness of results
Practical implications – Increased integration would help in reducing arbitrage opportunities in
these financial markets, having implications for market participants and promoting economic growth
through financial deepening, in general. Since the degree of integration is dependent on policy and
institutional infrastructure, ongoing efforts to develop financial sectors and reforms would need to be accelerated to further strengthen the degree of convergence between securities markets.
Originality/value – The paper fulfills an identified need to examine financial market integration in the SAARC region, using data for both stock and bond markets. This is the first study to use bond market data for SAARC countries and it also adds to the limited literature of bond market integration
KeywordsBangladesh, Bonds, Financial integration, Financial markets, India, Pakistan, South Asian Association for Regional Co-operation, Sri Lanka, Stock returns
This article originally appeared in Volume 1 Number 2, 2012,
South Asian Journal of Global Business Research
The following articles were selected for this year's Highly Commended Award
"Market concentration and pricing behaviour of Sri Lankan banks"
Shrimal Perera, Michael Skully, My Nguyen
This article originally appeared in Volume 1 Number 1, 2012, South Asian Journal of Global Business Research
"Great (transformational) leadership=charisma+vision"
Naresh Khatri, Klaus J. Templer, Pawan S. Budhwar
This article originally appeared in Volume 1 Number 1, 2012, South Asian Journal of Global Business Research
Outstanding Reviewers
Catherine Ho
Universiti Teknologi MARA, Malaysia
Ken Hyde
Auckland University of Technology, New Zealand
Ivan Indriawan
Auckland University of Technology, New Zealand
Dr Daniel Holt
Michael Skully