Are the Global Stock Markets Inter-Linked : Evidence from the Literature

Opening-up of the financial markets of the world for foreign capital has led to the increased financial integration among different countries. This paper reviews and summarizes the research on the subject of integration and dynamic linkages between stock markets in different parts of the world. Majority of the studies suggested that market integration has increased significantly over the years, within an international context. We find that not many studies have concentrated on the interaction of Indian markets with the foreign markets, and most of the studies concerning Indian have concentrated at the inter-relationship of Indian stock market with those of the Developed nations. Therefore, there is a scope to study the inter-linkages between Indian stock markets and those of the other SAARC nations