The increasing impact of Spain on the equity markets of Brazil, Chile and Mexico during the neoliberal reforms of the 1990s (original) (raw)

Rivas, A., Verma, R., Rodriguez, A., & Albuquerque, P. H. (2023). Increasing Impact of Spain on the Equity Markets of Brazil, Chile and Mexico During the Neoliberal Reforms of the 1990s. International Journal of Social Sciences and Economic Review, 5(3), 08–20. https://doi.org/10.36923/ijsser.v5i3.2

29 Pages Posted: 16 Dec 2005 Last revised: 26 Oct 2023

Date Written: July 31, 2022

Abstract

The article examines stock index price responses in Brazil, Chile and Mexico to those in the US, Spain and four European countries during three sub-periods surrounding the neoliberal reforms of the 1990s: 1988 to 1994, 1995 to 1998, and 1999 to 2004, using VAR modeling. It finds that equity markets became more interconnected as countries opened to international trade and capital flows, and that there was an increasing impact of Spain on Latin American equity markets. Stronger economic linkages (more trade and foreign direct investment) between Spain and these countries, specially in Brazil, seem to explain increased equity markets interconnectedness.

Keywords: Emerging Markets, Latin America, Spain, Stock Markets Interdependence, VAR Modeling, Neoliberal reforms

JEL Classification: F30, G15, O54, C22

Suggested Citation: Suggested Citation

Rivas, Andres E. and Verma, Rahul and Rodriguez, Antonio J. and Albuquerque, Pedro H., The increasing impact of Spain on the equity markets of Brazil, Chile and Mexico during the neoliberal reforms of the 1990s (July 31, 2022). Rivas, A., Verma, R., Rodriguez, A., & Albuquerque, P. H. (2023). Increasing Impact of Spain on the Equity Markets of Brazil, Chile and Mexico During the Neoliberal Reforms of the 1990s. International Journal of Social Sciences and Economic Review, 5(3), 08–20. https://doi.org/10.36923/ijsser.v5i3.2, Available at SSRN: https://ssrn.com/abstract=870324 or http://dx.doi.org/10.2139/ssrn.870324