Explaining the migration of stocks from exchanges in emerging economies to international centers

Stijn Claessens (), Daniela Klingebiel and Sergio Schmukler

No 2816, Policy Research Working Paper Series from The World Bank

Abstract: The authors study the determinants of the growing migration of stock market activity to international financial centers. They use a sample of 77 countries and document that higher economic growth and more macroeconomic stability help stock market development. Countries with higher income per capita, sounder macroeconomic policies, more efficient legal systems, better shareholder protection, and more open financial markets tend to have larger and more liquid stock markets. The authors show that these factors also drive the degree with which capital raising, listing, and trading have been migrating to international financial centers. As fundamentals improve and technology advances, this migration will likely increase and domestic stock market activity may become too little to support local markets. For many emerging economies, the best policy is to establish sound fundamentals but not necessarily the trading, or even listing of securities locally.

Keywords: Banks&Banking Reform; Economic Theory&Research; Markets and Market Access; International Terrorism&Counterterrorism; Payment Systems&Infrastructure; Economic Theory&Research; Banks&Banking Reform; International Terrorism&Counterterrorism; Markets and Market Access; Access to Markets (search for similar items in EconPapers)
Date: 2002-03-31
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (42)

Downloads: (external link)
http://www-wds.worldbank.org/external/default/WDSC ... d/PDF/multi0page.pdf (application/pdf)

Related works:
Working Paper: Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centres (2002)
Working Paper: Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centres (2002)
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:wbk:wbrwps:2816

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().