Cross-border Listings, Capital Controls, and Equity Flows To Emerging Markets / Hali J. Edison, Francis E. Warnock.

Format:

Book

Author/Creator:

Edison, Hali J.

Contributor:

National Bureau of Economic Research.

Warnock, Francis E.

Series:

Working Paper Series (National Bureau of Economic Research) no. w12589.

NBER working paper series no. w12589

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2006.

Summary:

We investigate the impact of two types of financial liberalizations on short- and long-horizon capital flows to emerging markets in a framework that controls for push and pull factors. The first type of liberalization, a reduction in capital controls, is countrywide but uncertain, because its extent and permanence is not known with certainty. The second type, a cross-border listing, is a firm-level liberalization that has no uncertainty. Consistent with theoretical predictions, we find that the deterministic cross-listing results in an immediate but short-lived increase in capital inflows. In contrast, the uncertain reduction in capital controls results in increased inflows only over a longer horizon, if at all.

Notes:

Print version record

October 2006.