Document Type

Thesis or dissertation

Date of this Version



Karen K. Lewis


This paper studies the correlations between the equity markets of emerging economies, with a particular focus in the Latin American region. In particular, it offers a cross-regional comparison of the correlations and trends of correlations between the equity markets of the emerging countries in the Latin America, Asia, Europe, Africa and Middle East regions. Using correlation matrices, this paper shows that even though correlations within equity markets of emerging economies in Latin America are higher than those in Asia, Europe, Africa and the Middle East, these correlations are not increasing as fast as those in other regions. This paper also shows evidence of blocks of correlations in Africa and the Middle East, where equity markets are highly correlated within blocks, and negatively correlated with equities outside each block. Lastly, the paper finds evidence of a possible positive relationship between a region’s correlations with the United States and local correlations within the region.


emerging economies, equity markets, correlations, Latin America



Date Posted: 17 October 2019


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