Towards an Unstable Hook: The Evolution of Stock Market Integration Since 1913 / Cécile Bastidon, Michael Bordo, Antoine Parent, Marc Weidenmier.

Format:

Book

Author/Creator:

Bastidon, Cécile.

Contributor:

National Bureau of Economic Research.

Bordo, Michael.

Parent, Antoine.

Weidenmier, Marc.

Series:

Working Paper Series (National Bureau of Economic Research) no. w26166.

NBER working paper series no. w26166

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Towards an Unstable Hook

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2019.

Summary:

We examine equity market integration for 17 countries from 1913-2018. We use network analysis to measure the evolution of global stock market integration as well as stock market integration between and across countries. The empirical results suggest that long-run stock market integration looks like an unstable hook. Equity market integration first peaked in 1913 during the first era of globalization (1870-1913) when unfettered markets ruled the day. Integration declined over the next 60 years as countries experienced the Great Depression and shunned international capital markets. The end of the Bretton Woods system in the early 1970s ushered in the second period of globalization. Our empirical analysis suggests that stock market integration in the recent period of globalization has surpassed the first era of globalization in the last 10 years and currently has the highest level of equity market integration and network instability in world history.

Notes:

Print version record

August 2019.