Cross-border Listings, Capital Controls, and Equity Flows To Emerging Markets

Hali Edison () and Francis Warnock

No 12589, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We investigate the impact of two types of financial liberalizations on short- and long-horizon capital flows to emerging markets in a framework that controls for push and pull factors. The first type of liberalization, a reduction in capital controls, is countrywide but uncertain, because its extent and permanence is not known with certainty. The second type, a cross-border listing, is a firm-level liberalization that has no uncertainty. Consistent with theoretical predictions, we find that the deterministic cross-listing results in an immediate but short-lived increase in capital inflows. In contrast, the uncertain reduction in capital controls results in increased inflows only over a longer horizon, if at all.

JEL-codes: F21 F3 G15 (search for similar items in EconPapers)
Date: 2006-10
New Economics Papers: this item is included in nep-fin and nep-fmk
Note: IFM
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Citations: View citations in EconPapers (4)

Published as Edison, H., and F. Warnock, 2008. "Cross-Border Listings, Capital Controls, and Equity Flows to Emerging Markets." Journal of International Money and Finance 27: 1013-1027

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Related works:
Journal Article: Cross-border listings, capital controls, and equity flows to emerging markets (2008)
Working Paper: Cross-Border Listings, Capital Controls, and U.S. Equity Flows to Emerging Markets (2003)
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