Do Implicit Barriers Matter for Globalization?

• 成果类型: Article
• 署名作者: Carrieri, Francesca; Chaieb, Ines; Errunza, Vihang
• 署名单位: McGill University; University of Geneva
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hht003
• 发表日期: 2013
• 页码: 1694
• 关键词: institutional investors; information asymmetry; Domestic investors; asset prices; HOME BIAS; MARKET; analysts; disclosure; liquidity; RISK

摘要

Market liberalization may not result in full market integration if implicit barriers are important. We test this proposition for investable and non-investable segments of twenty-two emerging markets (EMs). We also measure the degree of integration for six major developed markets (DMs) as a meaningful benchmark. We find that while the DMs are close to fully integrated, both EM segments are not effectively integrated with the global economy. We quantify the importance of implicit barriers and show that better institutions, stronger corporate governance, and more transparent markets in EMs would jointly contribute to a higher degree of integration by about 20% to 30%.