International Finance Corporations Emerging Countries

1923 Words8 Pages
Abstract: Emerging countries are the ones that change their status from less developed to developed countries by achieving a rise in GDP per capita and economic growth. This term is also stated as “convergence”. Due to a brief and precise history available in data bases, people argue about the limited data available on emerging markets. Literature review: Data since 1976 is available in the International Finance Corporations Emerging Data Base(EMBD). However, contrary to the complain about lack in availability of data, many databases have proved otherwise. Many markets such as Goetz man and Jorion 1999 have long histories. It is claimed that the market capitalization of Argentina was greater than that of UK. It has also been stated that…show more content…
Without proper information and knowledge regarding developmental economics, political science and demographics, one cannot conduct meaningful research. Hence the research of emerging markets finance cannot be conducted in a vacuum. The first section contains the research advances that have been made in the recent years whereas the second section depicts a comparison between the behavior of emerging markets returns before 1990 and after 1990’s. It has an emphasis on countries with the longest samples of emerging markets returns. As many of the capital market liberalizations revolved around 1990s, the analysis of research will categorically be of the 1990 study of . The effect of these liberalizations on the economy is of high importance in research advances in the recent years. The second section focuses (2) How much have we learned about emerging markets? Market segmentation/Market integration Much research work lies focus on the conversion of countries from segmented to integrated markets. The two types of integration are Economic and Financial. Economic integration is when barriers to trade in goods and services are decreased. Whereas financial integration is when financial markets in the global economies are linked together where foreigners can easily access local capital markets and local investors can access foreign capital markets. The effect of market integration on security prices has
Open Document