DOES EUROPE HAVE AN INTEGRATED CAPITAL-MARKET - EVIDENCE FROM REAL INTEREST PARITY TESTS

Authors
MOOSA IA BHATTI RH
Citation
Ia. Moosa et Rh. Bhatti, DOES EUROPE HAVE AN INTEGRATED CAPITAL-MARKET - EVIDENCE FROM REAL INTEREST PARITY TESTS, Applied economics letters, 3(8), 1996, pp. 517-520
Citations number
23
Categorie Soggetti
Economics
Journal title
Applied economics letters → ACNP
ISSN journal
13504851
Volume
3
Issue
8
Year of publication
1996
Pages
517 - 520
Database
ISI
SICI code
1350-4851(1996)3:8<517:DEHAIC>2.0.ZU;2-5
Abstract
Empirical evidence on capital market integration in Europe is presente d by testing for mean reversion in the real interest differentials of seven European countries vis-a-vis Germany. The tests overwhelmingly r eject the null hypothesis of random walk in the real interest rate dif ferentials, implying that capital and goods markets have become integr ated in the countries considered.