Asian Capital Market Integration: Theory and Evidence

Capital Market Integration and Wages

For three years after the typical emerging economy opens its stock market to inflows of foreign capital, the average annual growth rate of the real wage in the manufacturing sector increases by a factor of three. No such increase occurs in a control group of countries that do not liberalize. The temporary increase in the growth rate of the real wage drives up the level of average annual compens...

Financial Market Integration: Empirical Evidence from India and Select South Asian Countries

This study examines the relation of the stock markets in India with some leading South Asian countries and also endeavours to communicate the impression whether Indian equity market is more proficient than the other south Asian markets as is popularly believed.Integrated financial market is assumed to be of immense significance as it constitutes an important vehicle for promoting domestic savin...

Market Structure : Theory and Evidence

Tax Incidence, Majority Voting and Capital Market Integration

We re-examine, from a political economy perspective, the standard view that higher capital mobility results in lower capital taxes a view, in fact, that is not confirmed by the available empirical evidence. We show that when a small economy is opened to capital mobility, the change of incidence of a tax on capital from capital owners to owners of the immobile factor may interact in such a way w...

Fiscal Policy, Human Capital, and Canada-US Labor Market Integration

This paper analyzes some of the implications of North American labor market integration for fiscal policy. The economies of Canada and the US are both characterized by highly integrated internal markets for goods and services as well as for labor and capital, and subnational governments in both economies play an important role in the financing and provision of public goods and services, includi...