Explaining the migration of stocks from exchanges in emerging economies to international centers

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Explaining the migration of stocks from exchanges in emerging economies to international centers, Volume 1

Author:	Claessens, Stijn; Klingebiel, Daniela; Schmukler, Sergio L.;	Collection Title:	Policy, Research working paper series ; no. WPS 2816
Date Stored:	2002/04/19	Document Date:	2002/03/31
Document Type:	Policy Research Working Paper	Language:	English
Major Sector:	Finance	Report Number:	WPS2816
Sub Sectors:	Capital Markets Development	SubTopics:	International Terrorism & Counterterrorism; Economic Theory & Research; Markets and Market Access; Payment Systems & Infrastructure; Banks & Banking Reform; Access to Markets
Volume No:	1

Summary: The authors study the determinants of the growing migration of stock market activity to international financial centers. They use a sample of 77 countries and document that higher economic growth and more macroeconomic stability help stock market development. Countries with higher income per capita, sounder macroeconomic policies, more efficient legal systems, better shareholder protection, and more open financial markets tend to have larger and more liquid stock markets. The authors show that these factors also drive the degree with which capital raising, listing, and trading have been migrating to international financial centers. As fundamentals improve and technology advances, this migration will likely increase and domestic stock market activity may become too little to support local markets. For many emerging economies, the best policy is to establish sound fundamentals but not necessarily the trading, or even listing of securities locally.


Official Documents Official, scanned versions of documents (may include signatures, etc.)
File Type		Description	File Size (mb)

	PDF 44 pages	Official version*	3.08 (approx.)
	Text	Text version**


Light-Weight Documents Lighter (less MB) documents which may or may not be the final, official version
File Type		Description	File Size (mb)

	PDF 38 pages	WPS2816	0.18

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