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Equity Market Liberalization in Emerging Markets
Author(s) -
Bekaert Geert,
Harvey Campbell R.,
Lundblad Christian T.
Publication year - 2003
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/1475-6803.00059
Subject(s) - liberalization , equity (law) , capital market , real economy , equity capital markets , emerging markets , international economics , economics , business , monetary economics , financial system , market economy , macroeconomics , finance , private equity , political science , law
Equity market liberalizations, if effective, lead to important changes in both the financial and real sectors as the economy becomes integrated into world capital markets. The study of market integration is complicated because one can liberalize in many ways and many countries have taken different routes. To study the effectiveness of particular liberalization policies, the sequencing of liberalizations, and the impact on the real economy, systematic methods must be developed to date the liberalization of emerging equity markets. We provide a synthesis of the current methods and show the impact of liberalization on the real sector.