Journal Press India®

FOCUS: Journal of International Business
Vol 12 , Issue 2 , July - December 2025 | Pages: 26-52 | Research Paper

A Comparative Study on the Influence of Globalization on Capital Market Development in Southeast Asia: The Cases of India, Indonesia, and China

 
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Author Details ( * ) denotes Corresponding author

1. * Srinibash Dash, Associate Professor, School of Management, Gangadhar Meher University, Sambalpur, Orissa, India (dash.srinibash@gmail.com)

This study explores the impact of globalization on the capital markets of India, Indonesia, and China over a 32-year period (1990–2022), analyzing stock and bond market volatility. Using statistical techniques such as correlation analysis, the t-test, and the ordinary least squares (OLS) method, the study evaluates capital market fluctuations and investment risks. Findings indicate that India experiences the highest price index return volatility, Indonesia’s equity market demonstrates significant fluctuations, and China’s bond market exhibits pronounced instability. The study highlights the influence of financial globalization on capital market performance and underscores the importance of regulatory frameworks in mitigating risks. The findings provide critical insights for policymakers, investors, and market participants aiming to navigate the evolving financial landscape in these emerging economies.

Keywords

Globalization; Capital market volatility; Stock and bond markets; Financial liberalization; Investment risk

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