Determinants of international financial integration

This paper will attempt to provide a comprehensive review and new concept of the so called international financial integration. In addition, it provides a review on the available indicators used as proxies for international financial integration in empirical study literature. It also proposes a more detailed set of new measures on international financial integration. A new database with these measures will be constructed for empirical research based on a number of commercial databases. This introduces a new database of indicators of international financial integration across countries and over time. It improves on previous efforts of other scattered sources using those indicators by extensively providing a wide array of indicators, examining the advantages and disadvantages of those indicators. It describes the data sources, the construction and the intuition for the different indicators and present descriptive statistics. This paper also empirically extends to examine and compare the current trend of internaional financial integration between countries and over time.