Stock Market Liberalizations and Export Dynamics

• Tác giả: Melise Jaud
• Ngôn ngữ: eng
• Ký hiệu phân loại: 330 Economics
• Thông tin xuất bản: World Bank, Washington, DC, 2023
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 320566
• Chủ đề: 1. DISCIPLINING ROLE OF FOREIGN INVESTORS; 2. EXPORT EFFICIENCY; 3. EXPORT PERFORMANCE; 4. FINANCIAL LIBERALIZATION AND STRUCTURAL CHANGE; 5. FOREIGN INVESTMENT IN EXPORTS

Tóm tắt

Foreign investors facilitate efficiency-enhancing structural change in the recipient countries. After countries liberalize their stock markets and allow foreign investors to acquire equity stakes in domestic firms, products that do not correspond to the liberalizing countries' comparative advantage disappear disproportionately faster from their export portfolios. At the same time, the overall long-term export performance of the liberalizing countries improves. Domestic stock market development does not have the same disciplining effect in terminating inefficient exports. Foreign investors thus play a unique role in improving resource allocation in the real economy.