The Future of Stock Exchanges in Emerging Economies: Evolution and Prosepcts

Stijn Claessens (), Daniela Klingebiel and Sergio Schmukler

Center for Financial Institutions Working Papers from Wharton School Center for Financial Institutions, University of Pennsylvania

Abstract: We study the determinants of stock market development and the growing migration of capital raising, listing, and trading activity to international exchanges. Economies with better fundamentals have larger and more liquid markets. As fundamentals improve, however, the degree of migration to international exchanges also increases. This leads to gains for corporations in the form of lower costs and more liquidly-traded shares. Fully-fledged local stock exchanges are thus becoming less necessary for many economies. Furthermore, migration can leave too little domestic activity to sustain a local exchange. Therefore, the functions and forms of stock exchanges in many economies need rethinking.

Keywords: stock exchange development; internationalization of financial markets; trading migration; emerging economies; cross-listing; ADRs; GDRs (search for similar items in EconPapers)
JEL-codes: G15 G18 G20 (search for similar items in EconPapers)
Date: 2002-02
References: Add references at CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://fic.wharton.upenn.edu/fic/papers/02/0203.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://fic.wharton.upenn.edu/fic/papers/02/0203.pdf [301 Moved Permanently]--> https://wifpr.wharton.upenn.edu/fic/papers/02/0203.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:wop:pennin:02-03

Access Statistics for this paper

More papers in Center for Financial Institutions Working Papers from Wharton School Center for Financial Institutions, University of Pennsylvania Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().