Financial Development, International Trade, and Stock Market Integration: Evidence in Six Southeastern Asia Countries

Abstract

Measuring the integration degree of the national stock market is popular in the general globalization trend. This paper applies the measurement method of Chaiporn et al. (2016) to consider the Vietnamese stock market, and fie other typical Asian economies in the period from 2000 to 2015. The authors’ method has its foundation in the research of Wälti (2011), An and Zhang (2013) and Dasgupta (2010). The paper adopted the fied effct and random effct models to measure the impacts of fiancial development, fiancial integration and international trade integration to national stock market integration. The research fidings revealed the positive affct of fiancial integration and development on the national stock market’s integration with the global stock market in Vietnam and fie other countries. In addition the research found international trade integration does not affct the integrating securities market, possibly because the bilateral trade is too small to impact the bilateral stock market’s integration