ARTÍCULO
TITULO

Financial Integration Analysis Between the Brazilian and the Argentinian Stock Market: A Dynamic Approach

Martin Pontuschka    
Marcelo Scherer Perlin    

Resumen

In this article we seek to verify the dynamics of financial integration between the Brazilian and the Argentinian stock index. We estimate a state space model by Kalman filter, which allowed the observation of the dynamics of the financial integration over time. We follow the proposal of Haldane and Hall (1991) and from the estimation of the model we observe the convergence and divergence between the Brazilian and Argentinian stock markets over the years 1987 and 2014. An important evidence was the observation of divergence between regional stock indexes in times of crisis in the international markets. That is, at moments of stress in financial markets, the Brazilian stock index showed greater convergence towards international markets than in relation to the Argentinian market. This evidence is in line with Manning (2002) that found the same effect in Asian equity markets during the 1997 crisis.

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