Regional financial integration in the Caribbean [[electronic resource] ] : evidence from financial and macroeconomic data / / by Raphael Espinova and Goohoon Kwon

• Record Nr.: UNINA9910463991103321
• Autore: Espinoza Raphael A
• Pubbl/distr/stampa: Washington, D.C., : International Monetary Fund, Middle East and Central Asia dept., 2009
• ISBN: 1-4623-9209-1; 1-4527-2686-8; 1-4518-7286-0; 1-282-84353-2; 9786612843532
• Descrizione fisica: 1 online resource (37 p.)
• Collana: IMF working paper ; ; WP/09/139
• Altri autori (Persone): KwonGoohoon
• Soggetti: Finance - Caribbean Area; Macroeconomics; Electronic books.; Caribbean Area Economic policy
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: "July 2009".
• Nota di bibliografia: Includes bibliographic references.
• Nota di contenuto: Contents; I. Introduction; II. Background; III. Stock Price Convergence; A. Data; B. AR results; C. Threshold Auto-Regression (TAR) estimator; IV. Current Account Convergence and Regional Trade Balance; A. Theory; B. Estimation framework; C. Global Financial Integration; D. Intra-regional trade and regional financial integration; V. Conclusion; References; Appendix A; Tables; 1. Balance of Payments; 2. UNCTAD FDI Inward Stock (In millions U.S. dollars, 2001; 3. UNCTAD FDI Outward Stock (In millions of U.S. dollars, 2001); 4. Regional Exports, as a Share of GDP; 5. Interest Rates: Principal Component Analysis, 1980m1-2005m126. Interest Comovements; 7. Cross-Listed Stocks; 8. Cross-Market Premium; 9. (G) ARCH-AR Model; 10. (G) ARCH-TAR Model; 11. β Coefficient from 1975-2005; 12. β Coefficient from 1975-90; 13. β Coefficient from 1991-2005; 14. Regional Financial Integration 1975-; 2005; 15. 1975-90 Estimates of Regional Financial Integration; 16. 1991-2005 Estimates of Regional Financial Integration; Figures; 1. Interest Rates in the CARICOM and Sigma-Convergence (3 month T-Bills); 2. Cross-Listed Stocks; 3. Convergence Speed vs. Foreign Liabilities
• Sommario/riassunto: This paper assesses the extent of regional financial integration in the Caribbean Community (CARICOM) by analyzing equity prices in the region and rigidity of external financing constraints. The results are presented in a cross-regional perspective. The Caribbean stock markets are not as well integrated as one would expect from the extent of cross-listing and importance of regional banking groups: price differentials of cross-listed stocks reach an average of 5 percent. Auto-Regressive models suggest that these price differentials are only slowly arbitraged away, with half-lives exceeding 7 wo