Aspects of the Caribbean Single Market & Economy: How Integrated are Regional Stock Markets

15 Pages Posted: 1 Oct 2016

See all articles by C Justin Robinson

C Justin Robinson

University of West Indies, Cave Hill

Date Written: December 01, 2006

Abstract

This study investigates the degree of integration among stock markets in the Caribbean Single Market area by analyzing the pricing of cross listed stocks within the region. The results show that the law of one price is generally violated for cross-listed stocks and there is little integration among the stock markets. It also suggests that there are arbitrage opportunities for investors. This result is in contrast to the experience of other regions of the world that have sought to integrate their stock markets. Empirical studies of European markets generally confirm that the “law of one price” holds across markets with regard to multiple listed stocks

Keywords: Caricom, CSME, Stock Markets

JEL Classification: G

Suggested Citation

Robinson, C Justin, Aspects of the Caribbean Single Market & Economy: How Integrated are Regional Stock Markets (December 01, 2006). Available at SSRN: https://ssrn.com/abstract=2845463 or http://dx.doi.org/10.2139/ssrn.2845463

C Justin Robinson (Contact Author)

University of West Indies, Cave Hill ( email )

Cave Hill
Barbados

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