Emerging Markets Are Catching Up: Economic or Financial Integration?
提出一个简单指标衡量经济一体化和金融一体化，发现发达国家一体化程度更高，但新兴市场近年经济一体化水平已赶上发达国家。
We propose a simple metric to measure two aspects of market integration, namely, economic integration (defined as a common cash-flow dynamic) and financial integration (defined as a common risk-pricing dynamic) and then examine their evolution through time while controlling for volatility. We find that developed (DEV) countries exhibit greater degrees of financial and economic integration than emerging (EMG) markets. Although the financial integration gap between these markets remains large throughout the sample period, the EMG economies are catching up with their DEV counterparts in recent years; their level of economic integration has reached that of DEV countries.