Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centers

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 d...

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Main Authors:	Claessens, Stijn, Klingebiel, Daniela, Schmukler, Sergio L.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, D.C. 2013
Subjects:	ACCOUNTING ACCOUNTING FRAMEWORK ADVERSE CONSEQUENCES BID BONDS BORROWING COSTS CAPITAL FLOWS CAPITAL MARKETS CAPITALIZATION CONSOLIDATION COST OF CAPITAL DEBT DIVIDENDS DOMESTIC MARKET EMERGING MARKETS EXCHANGE RATES FINANCIAL MARKETS FINANCIAL REFORM FINANCIAL SECTOR FINANCIAL SYSTEMS FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTORS FOREIGN OWNERSHIP GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT INCOME INFLATION INFLATION RATE INTEREST RATES INTERNATIONAL BANKS INTERNATIONAL MARKETS INTERNATIONALFIRMS INVESTMENT BANKING INVESTMENT BANKS LIQUIDITY LOCAL CAPITAL MARKETS MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMICS MERGERS MIGRATION NASDAQ NYSE OFFERINGS PRICE INCREASES PRIVATIZATION RESOURCE MOBILIZATION SETTLEMENT SYSTEMS SPREAD STOCKS TRANSITION ECONOMIES TURNOVER UNDERESTIMATES VALUATION VOLATILITY WEALTH STOCK MARKETS EMERGING ECONOMIES INTERNATIONAL FINANCIAL INSTITUTIONS TRADING ECONOMIC GROWTH PER CAPITA INCOME MACROECONOMIC POLICY LEGAL SYSTEMS SHAREHOLDING STRUCTURE CAPITAL TRANSACTIONS CAPITAL MOBILIZATION
Online Access:	http://documents.worldbank.org/curated/en/2002/03/1752444/explaining-migration-stocks-exchanges-emerging-economies-international-centers http://hdl.handle.net/10986/14814

id	okr-10986-14814
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spelling	okr-10986-148142021-04-23T14:03:20Z Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centers Claessens, Stijn Klingebiel, Daniela Schmukler, Sergio L. ACCOUNTING ACCOUNTING FRAMEWORK ADVERSE CONSEQUENCES BID BONDS BORROWING COSTS CAPITAL FLOWS CAPITAL MARKETS CAPITALIZATION CONSOLIDATION COST OF CAPITAL DEBT DIVIDENDS DOMESTIC MARKET EMERGING MARKETS EXCHANGE RATES FINANCIAL MARKETS FINANCIAL REFORM FINANCIAL SECTOR FINANCIAL SYSTEMS FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTORS FOREIGN OWNERSHIP GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT INCOME INFLATION INFLATION RATE INTEREST RATES INTERNATIONAL BANKS INTERNATIONAL MARKETS INTERNATIONALFIRMS INVESTMENT BANKING INVESTMENT BANKS LIQUIDITY LOCAL CAPITAL MARKETS MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMICS MERGERS MIGRATION NASDAQ NYSE OFFERINGS PRICE INCREASES PRIVATIZATION RESOURCE MOBILIZATION SETTLEMENT SYSTEMS SPREAD STOCKS TRANSITION ECONOMIES TURNOVER UNDERESTIMATES VALUATION VOLATILITY WEALTH STOCK MARKETS EMERGING ECONOMIES INTERNATIONAL MARKETS INTERNATIONAL FINANCIAL INSTITUTIONS TRADING ECONOMIC GROWTH MACROECONOMIC STABILITY PER CAPITA INCOME MACROECONOMIC POLICY LEGAL SYSTEMS SHAREHOLDING STRUCTURE CAPITAL TRANSACTIONS CAPITAL MOBILIZATION CAPITAL FLOWS 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. 2013-08-06T15:09:24Z 2013-08-06T15:09:24Z 2002-03 http://documents.worldbank.org/curated/en/2002/03/1752444/explaining-migration-stocks-exchanges-emerging-economies-international-centers http://hdl.handle.net/10986/14814 English en_US Policy Research Working Paper;No.2816 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTING ACCOUNTING FRAMEWORK ADVERSE CONSEQUENCES BID BONDS BORROWING COSTS CAPITAL FLOWS CAPITAL MARKETS CAPITALIZATION CONSOLIDATION COST OF CAPITAL DEBT DIVIDENDS DOMESTIC MARKET EMERGING MARKETS EXCHANGE RATES FINANCIAL MARKETS FINANCIAL REFORM FINANCIAL SECTOR FINANCIAL SYSTEMS FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTORS FOREIGN OWNERSHIP GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT INCOME INFLATION INFLATION RATE INTEREST RATES INTERNATIONAL BANKS INTERNATIONAL MARKETS INTERNATIONALFIRMS INVESTMENT BANKING INVESTMENT BANKS LIQUIDITY LOCAL CAPITAL MARKETS MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMICS MERGERS MIGRATION NASDAQ NYSE OFFERINGS PRICE INCREASES PRIVATIZATION RESOURCE MOBILIZATION SETTLEMENT SYSTEMS SPREAD STOCKS TRANSITION ECONOMIES TURNOVER UNDERESTIMATES VALUATION VOLATILITY WEALTH STOCK MARKETS EMERGING ECONOMIES INTERNATIONAL MARKETS INTERNATIONAL FINANCIAL INSTITUTIONS TRADING ECONOMIC GROWTH MACROECONOMIC STABILITY PER CAPITA INCOME MACROECONOMIC POLICY LEGAL SYSTEMS SHAREHOLDING STRUCTURE CAPITAL TRANSACTIONS CAPITAL MOBILIZATION CAPITAL FLOWS
spellingShingle	ACCOUNTING ACCOUNTING FRAMEWORK ADVERSE CONSEQUENCES BID BONDS BORROWING COSTS CAPITAL FLOWS CAPITAL MARKETS CAPITALIZATION CONSOLIDATION COST OF CAPITAL DEBT DIVIDENDS DOMESTIC MARKET EMERGING MARKETS EXCHANGE RATES FINANCIAL MARKETS FINANCIAL REFORM FINANCIAL SECTOR FINANCIAL SYSTEMS FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTORS FOREIGN OWNERSHIP GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT INCOME INFLATION INFLATION RATE INTEREST RATES INTERNATIONAL BANKS INTERNATIONAL MARKETS INTERNATIONALFIRMS INVESTMENT BANKING INVESTMENT BANKS LIQUIDITY LOCAL CAPITAL MARKETS MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMICS MERGERS MIGRATION NASDAQ NYSE OFFERINGS PRICE INCREASES PRIVATIZATION RESOURCE MOBILIZATION SETTLEMENT SYSTEMS SPREAD STOCKS TRANSITION ECONOMIES TURNOVER UNDERESTIMATES VALUATION VOLATILITY WEALTH STOCK MARKETS EMERGING ECONOMIES INTERNATIONAL MARKETS INTERNATIONAL FINANCIAL INSTITUTIONS TRADING ECONOMIC GROWTH MACROECONOMIC STABILITY PER CAPITA INCOME MACROECONOMIC POLICY LEGAL SYSTEMS SHAREHOLDING STRUCTURE CAPITAL TRANSACTIONS CAPITAL MOBILIZATION CAPITAL FLOWS Claessens, Stijn Klingebiel, Daniela Schmukler, Sergio L. Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centers
relation	Policy Research Working Paper;No.2816
description	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.
format	Publications & Research :: Policy Research Working Paper
author	Claessens, Stijn Klingebiel, Daniela Schmukler, Sergio L.
author_facet	Claessens, Stijn Klingebiel, Daniela Schmukler, Sergio L.
author_sort	Claessens, Stijn
title	Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centers
title_short	Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centers
title_full	Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centers
title_fullStr	Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centers
title_full_unstemmed	Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centers
title_sort	explaining the migration of stocks from exchanges in emerging economies to international centers
publisher	World Bank, Washington, D.C.
publishDate	2013
url	http://documents.worldbank.org/curated/en/2002/03/1752444/explaining-migration-stocks-exchanges-emerging-economies-international-centers http://hdl.handle.net/10986/14814
_version_	1764429832281653248

Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centers

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