We explore this question in two ways. First, we examine the breadth of the recent rise in sector effects, by exploring the evolution over time of country and industry effects outside of the technology, media and telecommunications (TMT) sectors. Our focus on TMT derives from the fact that these sectors have been identified in financial circles as being central to the recent stock market bubble. 4 We find that, outside of TMT, there is no significant rise in the absolute and relative importance of global industry effects since the mid-1980s, something we find hard to reconcile with the notion that their rise is capturing greater economic and financial integration
