A note on the shifting comparative advantage in trade in financial services
There have been changes in the types of services that major financial institutions offer their clients. Income from loan interests has decreased, making it necessary for banks to focus more on services such as letter of credit and note issuance. Involvement in exchange markets and agreements has also increased since the 1980s. Developments in international banking has led to a sharp increase in off-balance-sheet activities.
Publication Name: Banca Nazionale Del Lavoro Quarterly Review
International stock market linkages: evidence from the pre- and post-October1987 period
An analysis of the linkage and dynamic interactions among stock exchange movementsis presented. The analysis applies methods based on cointegration theory to test for such interactions. It is shown that earlier conclusions on the interdependence among national stock markets before the stock market crash of Oct 1987 is not validated. However, such relationship emerged following the stock market crash.
Publication Name: Journal of Banking & Finance