Abstract:
Emerging nations like Indonesia, South Korea, Bangladesh, Egypt, Mexico, Nigeria,
Pakistan, Turkey, the Philippines, Iran and Vietnam have developing stock markets which
may offer ample opportunities to investors for their portfolio returns. The emerging next ten
countries (N-10) in the present paper have been explored for diversification opportunities for
investors. The study has incorporated eight years’ (2013-2020) time series data for N-10
countries’ stock market indices. Portfolio diversification strategies between Pakistan and
other markets have been indicated as per the findings of Granger causality, Johansen
Cointegration techniques, VECM and Wald test. The unidirectional and bidirectional
linkages analysis has shown fewer possibilities between Bangladesh and Egypt stock markets
with diversification benefits. Thus, investors may utilise the findings of the study in planning
their portfolio among these stock markets.
