Testing the differences of world stock markets (1975-2009)

This study investigates the differences observed on stock returns before and after the opening of emerging markets. The stock returns from emerging and non-emerging countries were examined with the aim to identify if there is a co-integration between markets during the period of December 1975 through April 2009. In our findings, we observed no significant differences during the period. We conclude, therefore, that even though the process of economic liberalisation had been important to the emerging countries, in the first instance, changes were not felt in the stock market as arising from the openings of the emerging economies.