For a proper assessment of the evolution of integration over time, it
seems particularly useful to take a long-term perspective. Any extension of
the time dimension, however, typically comes at the cost of limited data
availability. For instance, few economic variables are actually reasonably
comparable over long periods. Also, country coverage may be low for
century-long comparisons. Still, Vadym Volosovych’s article forcefully
highlights the sizable benefits of such an approach. Using principal components
analysis, he examines capital market integration of 15 industrialized
economies for the period from 1875 to 2009. Volosovych not only
documents an increase in financial integration in recent years but also
identifies factors that help to explain the observed variation in integration
over time
For a proper assessment of the evolution of integration over time, itseems particularly useful to take a long-term perspective. Any extension ofthe time dimension, however, typically comes at the cost of limited dataavailability. For instance, few economic variables are actually reasonablycomparable over long periods. Also, country coverage may be low forcentury-long comparisons. Still, Vadym Volosovych’s article forcefullyhighlights the sizable benefits of such an approach. Using principal componentsanalysis, he examines capital market integration of 15 industrializedeconomies for the period from 1875 to 2009. Volosovych not onlydocuments an increase in financial integration in recent years but alsoidentifies factors that help to explain the observed variation in integrationover time
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