Are the Asian Equity Markets more Interdependent aft er the Financial Crisis

This paper examines the impact of the 1997 Asian Financial Crisis on the linkages between the Singapore and five Asian-Pacific stock markets. We show that the interdependence between these markets has intensified after the crisis. Before the crisis, only the Malaysian stock market is found to be cointegrated with Singapore. However, after the onset of the crisis, the stock markets of Hong Kong, Japan, Malaysia and the US are found to be cointegrated with the Singapore stock market. We would like to thank the Department of Economics, National University of Singapore for the provision of research grant. We also thank Xiaobing Zhang for assistance. Corresponding author: Terence Tai-Leung Chong, Department of Economics, The Chinese University of Hong Kong, Shatin, N.T., Hong Kong. Tel: (852) 26098193, Fax: (852) 26035805, e-mail: chong2064@cuhk.edu.hk. Homepage: http://www.cuhk.edu.hk/eco/staff/tlchong/tlchong3.htm. Citation: Foo, Siew-Yen, Wing Keung Wong, and Terence Tai-Leung Chong, (2008) "Are the Asian Equity Markets more Interdependent after the Financial Crisis?." Economics Bulletin, Vol. 6, No. 16 pp. 1-7 Submitted: March 13, 2008. Accepted: April 21, 2008. URL: http://economicsbulletin.vanderbilt.edu/2008/volume6/EB-08F30013A.pdf

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