ABSTRACT

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book examines the issue of equity markets interdependence or integration. It also examines the price linkage of the Australian equity market with those of its main trading partners and those of Association of Southeast Asian Nations (ASEAN). The book then investigates the price linkage among ASEAN equity markets. It provides more robust and comprehensive evidence on the issue of equity markets interdependence as it is able to overcome the major problems encountered by previous studies on equity market integration. The book discusses the concept and measurement of equity market integration and reviews the major literature on equity market integration. It shows that Australia has significant linkages with the US and ASEAN in the long-term and with the US, UK, Malaysia, Singapore and Thailand in the short-term.