Measuring the integration of world capital markets is notoriously difficult. For example, regulatory changes which … equity market becomes financially integrated with world capital markets. We find endogenous break dates that are very … markets are on average larger and more liquid than before; returns are more volatile and more highly correlated with the world …

find that increases in equity flows are associated with a lower cost of capital, higher correlation with world market …

We think of the expected real interest rate for ten OECD countries (our counterpart of the world economy) as determined … estimated the reduced form for CDP-weighted world averages of the expected short-term real interest rate and the investment … ratio over the period 1959-88. The estimates reveal significant effects in the predicted direction for world stock returns …