Advanced and Emergent Equity Market Behaviour

Abstract

The drive of this work is to observe the bidirectional association in a section of advanced and emergent equity market places at diverse points of time. For the study purpose top ten Advanced and emergent markets are taken into consideration. Daily closing prices of these markets’ representative index were taken over a period of twenty-three years. Granger Causality Test was applid after checking the assumption of causality. An existence of bidirectional relational was established for nations. VAR test was also applied further to estimate the causality in the short term.