Stock Market Integration : A Review of Literature from a Global Perspective

The relaxation of the various rules and regulations and opening the doors of financial markets to foreign capital has helped in the global financial integration. This paper is an attempt to assemble the various literature available in the field of stock market integration across the world. This paper has gathered around 223 research papers from various sources for a period ranging from 1972 to September 2018. From the study, it has been observed that the stock market integration has been accelerated over a period of time, especially after the two major crises, viz., Asian financial crisis of 1999 and 2008 subprime global financial crisis. Further, from the previous studies it is noted that researchers concentrated mainly on the integration between developed and emerging stock markets, while frontier and standalone markets received less focus. Overall, the present paper will be a guide to the researchers to carry out future research in this area and to the various practitioners in these markets to arrive at faster and better decisions