Testing the Existence of Integration; Kuwait and Jordan Financial Markets

Mohamad H. Atyeh; Wael Al-Rashed

doi:doi:10.11648/j.ijefm.20130102.14

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Testing the Existence of Integration; Kuwait and Jordan Financial Markets

Mohamad H. Atyeh, Wael Al-Rashed

Published in International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 2)

Published: 2 April 2013

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Abstract

The objective of this research is to examine the Arab financial markets integration mainly through its stock markets concentrating on specific countries namely, Kuwait and Jordan. There are several methods have been used to examine the existence of integration. However, the Johansen approach to integration is considered a more reliable method than other conventional integration approaches and is applicable irrespective of the order of integration of the time series. Unlike most of the conventional integration procedures, which are valid for large sample size, Johansen approach is more robust and performs well for large sample sizes. The results show that the null hypothesis of no integration cannot be accepted. This suggests the existence of a long-run relationship between Kuwait and Jordan.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 2)
DOI	10.11648/j.ijefm.20130102.14
Page(s)	89-94
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Financial Markets Integration, Johansen Approach, Law of One Price (LOOP), Capital Asset Pricing Model (CAPM), Market Capitalization

References

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APA Style

Mohamad H. Atyeh, Wael Al-Rashed. (2013). Testing the Existence of Integration; Kuwait and Jordan Financial Markets. International Journal of Economics, Finance and Management Sciences, 1(2), 89-94. https://doi.org/10.11648/j.ijefm.20130102.14

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ACS Style

Mohamad H. Atyeh; Wael Al-Rashed. Testing the Existence of Integration; Kuwait and Jordan Financial Markets. Int. J. Econ. Finance Manag. Sci. 2013, 1(2), 89-94. doi: 10.11648/j.ijefm.20130102.14

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AMA Style

Mohamad H. Atyeh, Wael Al-Rashed. Testing the Existence of Integration; Kuwait and Jordan Financial Markets. Int J Econ Finance Manag Sci. 2013;1(2):89-94. doi: 10.11648/j.ijefm.20130102.14

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@article{10.11648/j.ijefm.20130102.14,
  author = {Mohamad H. Atyeh and Wael Al-Rashed},
  title = {Testing the Existence of Integration; Kuwait and Jordan Financial Markets},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {1},
  number = {2},
  pages = {89-94},
  doi = {10.11648/j.ijefm.20130102.14},
  url = {https://doi.org/10.11648/j.ijefm.20130102.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130102.14},
  abstract = {The objective of this research is to examine the Arab financial markets integration mainly through its stock markets concentrating on specific countries namely, Kuwait and Jordan. There are several methods have been used to examine the existence of integration. However, the Johansen approach to integration is considered a more reliable method than other conventional integration approaches and is applicable irrespective of the order of integration of the time series. Unlike most of the conventional integration procedures, which are valid for large sample size, Johansen approach is more robust and performs well for large sample sizes. The results show that the null hypothesis of no integration cannot be accepted. This suggests the existence of a long-run relationship between Kuwait and Jordan.},
 year = {2013}
}

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TY  - JOUR
T1  - Testing the Existence of Integration; Kuwait and Jordan Financial Markets
AU  - Mohamad H. Atyeh
AU  - Wael Al-Rashed
Y1  - 2013/04/02
PY  - 2013
N1  - https://doi.org/10.11648/j.ijefm.20130102.14
DO  - 10.11648/j.ijefm.20130102.14
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
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EP  - 94
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20130102.14
AB  - The objective of this research is to examine the Arab financial markets integration mainly through its stock markets concentrating on specific countries namely, Kuwait and Jordan. There are several methods have been used to examine the existence of integration. However, the Johansen approach to integration is considered a more reliable method than other conventional integration approaches and is applicable irrespective of the order of integration of the time series. Unlike most of the conventional integration procedures, which are valid for large sample size, Johansen approach is more robust and performs well for large sample sizes. The results show that the null hypothesis of no integration cannot be accepted. This suggests the existence of a long-run relationship between Kuwait and Jordan.
VL  - 1
IS  - 2
ER  -

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Author Information

Mohamad H. Atyeh

College of Business Administration, Kuwait University, Kuwait
Wael Al-Rashed

College of Business Administration, Kuwait University, Kuwait

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APA Style

Mohamad H. Atyeh, Wael Al-Rashed. (2013). Testing the Existence of Integration; Kuwait and Jordan Financial Markets. International Journal of Economics, Finance and Management Sciences, 1(2), 89-94. https://doi.org/10.11648/j.ijefm.20130102.14

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ACS Style

Mohamad H. Atyeh; Wael Al-Rashed. Testing the Existence of Integration; Kuwait and Jordan Financial Markets. Int. J. Econ. Finance Manag. Sci. 2013, 1(2), 89-94. doi: 10.11648/j.ijefm.20130102.14

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AMA Style

Mohamad H. Atyeh, Wael Al-Rashed. Testing the Existence of Integration; Kuwait and Jordan Financial Markets. Int J Econ Finance Manag Sci. 2013;1(2):89-94. doi: 10.11648/j.ijefm.20130102.14

Copy | Download

@article{10.11648/j.ijefm.20130102.14,
  author = {Mohamad H. Atyeh and Wael Al-Rashed},
  title = {Testing the Existence of Integration; Kuwait and Jordan Financial Markets},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {1},
  number = {2},
  pages = {89-94},
  doi = {10.11648/j.ijefm.20130102.14},
  url = {https://doi.org/10.11648/j.ijefm.20130102.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130102.14},
  abstract = {The objective of this research is to examine the Arab financial markets integration mainly through its stock markets concentrating on specific countries namely, Kuwait and Jordan. There are several methods have been used to examine the existence of integration. However, the Johansen approach to integration is considered a more reliable method than other conventional integration approaches and is applicable irrespective of the order of integration of the time series. Unlike most of the conventional integration procedures, which are valid for large sample size, Johansen approach is more robust and performs well for large sample sizes. The results show that the null hypothesis of no integration cannot be accepted. This suggests the existence of a long-run relationship between Kuwait and Jordan.},
 year = {2013}
}

Copy | Download

TY  - JOUR
T1  - Testing the Existence of Integration; Kuwait and Jordan Financial Markets
AU  - Mohamad H. Atyeh
AU  - Wael Al-Rashed
Y1  - 2013/04/02
PY  - 2013
N1  - https://doi.org/10.11648/j.ijefm.20130102.14
DO  - 10.11648/j.ijefm.20130102.14
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 89
EP  - 94
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20130102.14
AB  - The objective of this research is to examine the Arab financial markets integration mainly through its stock markets concentrating on specific countries namely, Kuwait and Jordan. There are several methods have been used to examine the existence of integration. However, the Johansen approach to integration is considered a more reliable method than other conventional integration approaches and is applicable irrespective of the order of integration of the time series. Unlike most of the conventional integration procedures, which are valid for large sample size, Johansen approach is more robust and performs well for large sample sizes. The results show that the null hypothesis of no integration cannot be accepted. This suggests the existence of a long-run relationship between Kuwait and Jordan.
VL  - 1
IS  - 2
ER  -

Copy | Download