Stock Market Liberalization And Emerging Market Country Fund Premiums by Dilip K. Patro :: SSRN

Learn more about how your support makes a difference or make a gift now. Skip to content Skip to navigation.

Contact Make a Gift. About Scholars Research Events.

Stock Market Liberalization, Economic Reform, and Emerging Market Equity Prices. The decade from to witnessed unprecedented emerging stock market liberalizations, as governments from Caracas to Kuala Lumpur opened their equity markets to non-residents for the first time.

Stock Market Liberalization, Economic Reform, and Emerging Market Equity Prices | SIEPR

Emerging market stock prices also boomed during this period. It is tempting to conclude that the stock market openings were responsible for the jump in asset prices, but the wave of openings was concurrent with a period of drastic economic reform.

What then, caused the boom? Was it external opening, reform, or both?

By constructing an exhaustive list of all major stock market liberalizations and economic reforms occurring in twelve LDCs from to , I am able to disentangle the effects of stock market opening from the influence of economic reform. The results are striking.

The effects of stock market liberalization are at most two thirds as large as suggested by previous work, and economic reforms are an equally important source of asset revaluation. Research Publications Projects Centers Programs Faculty Seed Funding Student Opportunities Undergraduate RA openings Graduate Fellowships. Contact Us John A. Support Us Learn more about how your support makes a difference or make a gift now Make A Gift.