Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Financial Integration and Investment Decisions D9-V2
We analyzed the links between international equity flows and speculative bubbles in the equity markets of six South-East Asian countries over the period 19912006. Based on a cointegration analysis, we found signi?cant equilibrium cointegration links between international equity flows and speculative bubbles. Before the Asian economic and financial crisis, an increase in speculative bubbles was accompanied by a decrease in net capital outflows. Our results are consistent with theories that predict that speculative bubbles absorb domestic savings in financially underdeveloped countries.
Speculative bubbles International equity flows South-East Asia Cointegration analysis