 Global competitiveness and market liquidityJang-Chul Kim, Sharif Mazumder, Ali Nejadmalayeri and Qing Su Global Finance Journal, 2025, vol. 67, issue C Abstract: Motivated by the pioneering work of Porter (1990) and a vast supporting literature, we posit that global competitiveness improves a nation's ability to benefit from globalization and financial liberalization. To prove the veracity of this supposition, we study the relationship between the competitiveness of countries worldwide, as measured by the Global Competitiveness Index as well as its sub-indices, and the market liquidity of cross-listed stocks from 43 countries on the NYSE between 2006 and 2019. Our findings suggest that a country's greater global competitiveness extends beyond its borders, thereby significantly enhancing the liquidity of its foreign-listed stocks. This extenuating impact of global competitiveness on cross-listed stocks is partially but significantly due to reduced information asymmetry in global markets. Competitiveness associated with efficiency and innovation are particularly crucial in improving market liquidity and ameliorating the adverse effects of information asymmetry on market liquidity. Keywords: Market liquidity; Bid-ask spreads; Information asymmetry; Global competitiveness (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:67:y:2025:i:c:s1044028325000754 DOI: 10.1016/j.gfj.2025.101148 Access Statistics for this article Global Finance Journal is currently edited by Manuchehr Shahrokhi More articles in Global Finance Journal from Elsevier |
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