COINTEG RATION TRENDS AMONG THE NAFTA EQUITY MARKETS

Recent economic and financial liberalization policies have increased the internationalization of emerging markets. A daring strategy undertaken by Mexico constituted the North America Free Trade Agreement (NAFTA); in addition to increased trade and investments, it should have led to stronger links a...

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Detalles Bibliográficos
Autores: Francisco López-Herrera, Edgar Ortiz
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2010
País:México
Institución:Universidad Nacional Autónoma de México
Repositorio:Redalyc-UNAM
OAI Identifier:oai:redalyc.org:86618030007
Acceso en línea:https://www.redalyc.org/articulo.oa?id=86618030007
Access Level:acceso abierto
Palabra clave:Economía y Finanzas
NAFTA
Mexico
Integration
segmentation
Cointegration
Descripción
Sumario:Recent economic and financial liberalization policies have increased the internationalization of emerging markets. A daring strategy undertaken by Mexico constituted the North America Free Trade Agreement (NAFTA); in addition to increased trade and investments, it should have led to stronger links among the equity markets from Canada, United States and Mexico. This study tests a "first generation" financial integration among those markets, applying Johansen's cointegration technique. It also examines integration between the NAFTA markets and the world capital market. Results evidence a time-varying integration process among NAFTA equity markets. Integration of the NAFTA capital markets to the world capital market evidences a mild segmentation and a time-varying integration as well.