Email this article The interdependence of major european stock markets: evidence for Greece
Abstract
This paper provides new evidence on the relationship between the Greek "blue chip" stock
market and the six relative European markets by applying cointegration tests. The time period
examined is 1998 to 2000, which marks the entry of Greece to the European Exchange Rates
Mechanism II. The empirical results indicate that the Athens Stock Exchange has no considerable
links, except for one case, with any other European developed markets examined. These
findings have some significant implications for European-oriented portfolio diversification and
the national stock market integration hypothesis.
market and the six relative European markets by applying cointegration tests. The time period
examined is 1998 to 2000, which marks the entry of Greece to the European Exchange Rates
Mechanism II. The empirical results indicate that the Athens Stock Exchange has no considerable
links, except for one case, with any other European developed markets examined. These
findings have some significant implications for European-oriented portfolio diversification and
the national stock market integration hypothesis.
Keywords
Economic integration; Economic conditions; Greece; Stocks; Stock exchanges; Europe
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