Cross-border listings, capital controls, and equity flows to emerging markets

Hali Edison () and Francis Warnock

Journal of International Money and Finance, 2008, vol. 27, issue 6, 1013-1027

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 are 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.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (58)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0261-5606(08)00078-8
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Cross-border Listings, Capital Controls, and Equity Flows To Emerging Markets (2006)
Working Paper: Cross-Border Listings, Capital Controls, and U.S. Equity Flows to Emerging Markets (2003)
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: https://EconPapers.repec.org/RePEc:eee:jimfin:v:27:y:2008:i:6:p:1013-1027

Access Statistics for this article

Journal of International Money and Finance is currently edited by J. R. Lothian

More articles in Journal of International Money and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().