← Search

Do Implicit Barriers Matter for Globalization?

Francesca Carrieri¹; Ines Chaieb^2,3; Vihang Errunza¹

¹ McGill University · ² University of Geneva · ³ Swiss Finance Institute

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%. The Author 2013. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. For Permissions, please e-mail: [email protected]., Oxford University Press.

DOI

10.1093/rfs/hht003

Volume

26 (7)

Pages

1694-1739

Language

en

Export

BibTeX

Sources

openalex crossref