Does increased international influence cause higher stock market volatility?

Increased international financial integration is likely to cause greater ma rket interdependence. This may either reduce volatility or increase it, by adding a new source of noise. Based on Swedish data, the findings in this p aper are that foreign influence on the stock market shows a clear, positive trend, while purely domestic factors have not become more volatile. The tr endwise increase in volatility on the Swedish stock market can thus be attr ibuted to increased foreign influence.