Does the US influence ASEAN+3 equity market integration?

Abstract

Purpose

This paper aims to examine whether the US influences the ASEAN + 3 financial market integration.

Design/methodology/approach

A two-stage cointegration test is used in the estimation by using equity indices from selected member economies and the USA.

Findings

The finding of this study shows that the equity markets of ASEAN + 3 are integrated especially after the Asian crisis period reflecting the regional cooperation. There is a strong market nexus between ASEAN + 3 and the USA, but the ASEAN + 3 financial cooperation agreement does not depend on the US financial market.

Originality/value

The study offers invaluable policy implications for developing the nexus in the regional equity markets.

Citation

Rahman, M.S. and Farihana, S. (2021), "Does the US influence ASEAN+3 equity market integration?", Journal of Financial Economic Policy, Vol. 13 No. 4, pp. 502-524. https://doi.org/10.1108/JFEP-06-2020-0133