Regional Financial Integration in the GCC

By Raphael A Espinoza, Oral Williams, Ananthakrishnan Prasad

April 1, 2010

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Format: Chicago

Raphael A Espinoza, Oral Williams, and Ananthakrishnan Prasad. Regional Financial Integration in the GCC, (USA: International Monetary Fund, 2010) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

We investigate the extent of regional financial integration in the member countries of the Gulf Cooperation Council. The limited volume data available suggests that regional integration is non-negligible. Bahrain and Kuwait investments especially are oriented towards the region. The development of stock markets in the region will also improve the extent of financial integration. Interest rate data shows that convergence exists and that interest rate differentials are relatively short-lived-especially compared to the ECCU, another emerging market region sharing a common currency. Equities data using cross-listed stocks confirms that stock markets are fairly integrated compared to other emerging market regions, although financial integration is hampered by market illiquidity.

Subject: Arbitrage, Financial integration, Housing, Stock markets, Stocks

Keywords: GCC, Price, Total GCC, WP

Publication Details

Pages:

33
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2010/090
Stock No:

WPIEA2010090
ISBN:

9781451982589
ISSN:

1018-5941

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