Are Stock Markets and Foreign Exchange Markets Cointegrated? An Empirical Analysis

Content Provider	Semantic Scholar
Author	Laghari, Fahmida Chengang, Ye
Copyright Year	2017
Abstract	Capital markets and foreign exchange markets play a dynamic role in economic and portfolio decisions [1] . Stock markets and foreign exchange markets significantly influence each other in longrun as well as short-run [2] . During crisis stock markets and foreign exchange markets fully impact or reflect each other. In a condition if stock prices and exchange rates are linked and exchange rates cause stock prices then crisis of stock markets can be prevented by controlling exchange rates [3] . This situation can be helpful for the developing countries to enhance foreign portfolio investment in their country. Likewise, in a condition when stock prices cause exchange rates then stock markets can be stabilized by authorities through fixing the domestic economic policies [4] . The relationship between stock markets and foreign exchange markets can be helpful for investors by utilizing any information or innovation of one market to predict the behavior of other market.
File Format	PDF HTM / HTML
DOI	10.20431/2349-0349.0512001
Alternate Webpage(s)	https://www.arcjournals.org/pdfs/ijmsr/v5-i12/1.pdf
Alternate Webpage(s)	https://doi.org/10.20431/2349-0349.0512001
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article