Dynamic Financial Market Integration: A Path to Sustainable Growth

This paper examines the integration between Indonesia and Asia-AustraliaEurope-US stock markets. Specifically, this article investigates whether there is a dynamic integration in Indonesia’s financial markets to the global. The author uses correlation and regression methods to explore dynamic integration. The author also uses an additive regression method for robustness check. Overall, the author finds that there is a dynamic integration in Indonesia’s financial market. Indonesia’s financial market has become more globally integrated over the last two decades. The author concludes that there are sustainable growth opportunities along with the integration of Indonesia’s and global financial markets.