Is Australia Comparable to Singapore as a Global Financial Market?
Abstract
Using Bloomberg, Yahoo Finance, and the World Development Indicators Online databases over a period 1996 through 2005, this study investigates and tests the growth rate and volatility of two markets, Australia and Singapore. Two periods are used, 1996 through 2000 and 2001 through 2005, to evaluate the change of growth rate and volatility of each market. For the second period, it is found that Australia has a significantly higher growth rate than Singapore, but at the same time it has a higher volatility. There were mixed results because Australia has the better growth rate for the period 2001 through 2005, while Singapore has a lower volatility. This study may lead to a conclusion that Australia is comparable to Singapore as a global financial market and with further research, you can compare the Australian market to others within the region and around the world.
This paper is derived from the comments of Maurice L. Newman, Chairman of the Australian Stock Exchange Limited and the Deutsche Bank AG Asia Pacific Advisory Board on July 26, 2000 in Australia. His speech is entitled “Globalisation – Does Australia have what it takes?” In his speech, Newman explains that Australia is a larger economy than Singapore, but it is still small by global standards. The United States is leading the charge toward globalization, with the Europeans lagging behind, and the Japanese changing even more slowly. Globalization is becoming extremely important to all economies around the world. Globalization is where markets, funds, and businesses move beyond the domestic and national markets to other markets around the wo ...