Exchange controls and European stock market integration

Exchange controls and European stock market integration have been studied. The late 1970s and 1980s impact on stock price predictability that resulted from the exchange controls being taken away has been analyzed. For Switzerland, France and Germany, removal of exchange controls gave rise to an increase in the interdependence between the markets and those of other countries. There is not much evidence of an upswing in interdependence for the United Kingdom and Italy.
This paper examines the impact on stock price predictability that the removal of exchange controls had on major European countries during the late 1970s and 1980s. It is found that [...]