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capital markets. Whereas the literature argues that international markets have been an important contributor to this process …, the role of domestic markets is mostly unknown. By examining the case of East Asia, this paper shows that domestic markets … have been a key driver of the observed trends in capital market financing since the early 2000s. As domestic markets …
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The international comovement of equity returns has been viewed as reflecting either pervasive common shocks or local linkages between countries. This paper brings these perspectives together by assessing the comovement of equity returns in a dynamic model that allows for both common factors and...
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