EconPapers    
Economics at your fingertips  
 

Equity markets

Odongo Kodongo and Kalu Ojah ()

Chapter 12 in Handbook of Globalisation and Development, 2017, pp 201-217 from Edward Elgar Publishing

Abstract: Several years after the beginning of the implementation of liberalisation policies, particularly promoted by the Washington-based global development institutions, there has been increased interaction between emerging equity markets and other equity markets that has heightened volatility transmission and covariation in liquidity risks across markets. However, currency risk, liquidity risk and other asset price- and market-impacting factors still remain, and still provide international investors a platform for diversification. Several of these important factors command a premium which suggests that the costs of external equity capital still face upward pressures, in spite of liberalisation policies implicitly aimed at driving them down. Our attempt to make sense of the evolving body of works in the area suggests that emerging market economies should carefully sequence the implementation of financial policies with, preferably, institutional and legal reforms preceding financial openness and/or that financial openness must be approached wisely in ways that minimise its destabilising effects on the cost of equity (for example, by concurrently provisioning requisite institutional infrastructure that foster efficiency of markets and mitigation of asset price distortion). Furthermore, we conspicuously flag areas needing future research.

Keywords: Development Studies; Economics and Finance; Politics and Public Policy (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.elgaronline.com/view/9781783478644.00020.xml (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: https://EconPapers.repec.org/RePEc:elg:eechap:15966_12

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().

 
Page updated 2021-04-18
Handle: RePEc:elg:eechap:15966_12