Measuring financial integration in the BRIC nations

摘要

This paper sets out to test the extent of financial integration at several levels. We focus on two key markets: the foreign exchange and equity markets. Results indicate that the BRIC financial markets are fully integrated with the world market and among themselves, but variably integrated with their corresponding regional markets and within their own financial markets. Furthermore, among the BRICs, Brazil exerts the highest level of regional and global integration, demonstrating the greatest influence, followed by Russia, India and China.