ABSTRACT
The general move towards international financial liberalisation by countries has been motivated by the fact that integration of financial markets allows for more efficient use and allocation of investment funds over time. Financial integration and capital mobility are closely related and often used interchangeably as the integration of financial markets involves the deregulation of national markets and the liberalisation of international capital flows. Therefore, financial market integration is conducive to capital mobility or increases the potential of capital flows and it can be implied that capital mobility is a sufficient condition for financial integration or that a high level of capital mobility indicates a high level of market integration (Moosa, 1996).
