Testing the Existence of Integration; Kuwait and Jordan Financial Markets

Mohamad H. Atyeh
2013 International Journal of Economics Finance and Management Sciences  
The objective of this research is to examine the Arab financial markets integration mainly through its stock markets concentrating on specific countries namely, Kuwait and Jordan. There are several methods have been used to examine the existence of integration. However, the Johansen approach to integration is considered a more reliable method than other conventional integration approaches and is applicable irrespective of the order of integration of the time series. Unlike most of the
more » ... st of the conventional integration procedures, which are valid for large sample size, Johansen approach is more robust and performs well for large sample sizes. The results show that the null hypothesis of no integration cannot be accepted. This suggests the existence of a long-run relationship between Kuwait and Jordan.
doi:10.11648/j.ijefm.20130102.14 fatcat:kk4mw55iond2tbbigkogf3fjie