Economics at your fingertips  

A note on how to enhance liquidity in emerging markets by levering on trading participants

Stefano Alderighi ()
Additional contact information
Stefano Alderighi: Senior Economist, World Federation of Exchanges. Visiting Research Fellow, University of Essex.

Economics Bulletin, 2017, vol. 37, issue 4, 2526-2532

Abstract: This note reviews the academic and non-academic literature on the relation between stock market participation and liquidity, with a particular focus on emerging markets. The paper concentrates on the three main investor categories considered relevant to enhance stock market liquidity: domestic institutional, retail and international investors. Based on the review of the literature, the paper concludes that to enhance stock market liquidity, emerging markets should avoid domestic institutional concentration, balance retail and institutional participation and gradually liberalise the market to foreign investors.

Keywords: Liquidity; Investor composition; Institutional concentration; Liberalization (search for similar items in EconPapers)
JEL-codes: G1 (search for similar items in EconPapers)
Date: 2017-11-19
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().

Page updated 2018-11-10
Handle: RePEc:ebl:ecbull:eb-17-00648