Stock market integration in the member coutries of Latin American Integrated Market (MILA)

Authors

  • Daniel Botero Guzmán
  • Carlos Enrique Vecino Arenas
  • Rafael Antonio Viana Barceló
  • Álvaro Javier Vargas Villamizar

DOI:

https://doi.org/10.18041/2539-3669/gestionlibre.16.2023.10227

Keywords:

Indicator, Integration, MILA, Stock Market, Regional, World

Abstract

The purpose of this paper is to determine the level of global and regional integration of the stock market in the MILA member countries: Colombia, Chile, Peru and Mexico. The Capital Asset Pricing Model (CAPM) is used to estimate an integration measure according to the law of one price. The results obtained indicate that only the global integration level of Chile showed a significant increase after the start of operations of the Latin American Integrated Market, while the regional integration levels of Colombia, Chile and Perú improved significantly after the emergence of MILA. This paper contributes to the academic literature on financial integration by estimating a de facto indicator that allows a more detailed analysis of this phenomenon. In addition, empirical evidence is presented on the evolution of the stock market integration of MILA member countries, an integration project that represented a milestone for Latin America but which has been little studied from the perspective presented here.

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Published

2023-05-19 — Updated on 2023-09-18

Versions

Issue

Vol. 8 No. 16 (2023): Gestión y Desarrollo Libre

Section

Artículos

How to Cite

Botero Guzmán, D., Vecino Arenas, C. E., Viana Barceló, R. A., & Vargas Villamizar, Álvaro J. (2023). Stock market integration in the member coutries of Latin American Integrated Market (MILA). Gestión Y Desarrollo Libre, 8(16). https://doi.org/10.18041/2539-3669/gestionlibre.16.2023.10227 (Original work published 2023)