Global financial crisis weakens link between market integration and efficiency.
The article looks at how well different stock markets work together and share information, especially during the global financial crisis. The researchers studied 29 countries and 4 regions from 1994 to 2016. They found that markets connected to the US market are more efficient. However, this link weakened during the crisis and when emerging markets were more volatile. The study suggests that efforts to make markets work together and share information should go hand in hand.