Housekeeping and Plumbing: The Investability of Emerging Markets
The authors look at the investment allocation process employed by portfolio investors in emerging markets. In particular, they examine the first of a two-stage decision process: first, investors create a subset of countries with investments potenti...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/03/3034747/housekeeping-plumbing-investability-emerging-markets http://hdl.handle.net/10986/14203 |
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okr-10986-142032021-04-23T14:03:20Z Housekeeping and Plumbing: The Investability of Emerging Markets Ladekarl, Jeppe Zervos, Sara ACCOUNTING AFFILIATES ASSET MANAGEMENT ASSETS ASSETS BANKING INDUSTRY BENCHMARK BONDS CAPITAL FLOWS CORPORATE GOVERNANCE COST OF CAPITAL CREDIT RISK DEBT DECENTRALIZATION DECISION MAKING DEFICITS DEVALUATION DIVERSIFICATION ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMISTS EMERGING MARKETS EQUITY MARKETS EXCHANGE RATE EXPECTED RETURN EXPECTED RETURNS EXPORTS FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEMS FISCAL POLICY FIXED INCOME FORECASTS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKETS FOREIGN INVESTORS GDP GLOBAL CAPITAL GLOBAL INTEREST HEDGE FUNDS INFLATION INSURANCE INTEREST RATE INTEREST RATES IPO LIQUIDITY MACROECONOMIC CONDITIONS MACROECONOMIC POLICY MACROECONOMIC STABILITY MANDATES MARKET FACTORS MARKET RISK MUTUAL FUND MUTUAL FUNDS NUMERICAL VALUE POLICY MAKERS POLITICAL ECONOMY PORTFOLIO PORTFOLIOS PROFITABILITY REGULATORY FRAMEWORK RETIREMENT RISK FACTORS SANCTIONS SECURITIES STATISTICAL ANALYSIS TIME SERIES TRADERS TRANSPARENCY INVESTMENT ENVIRONMENT ALLOCATION OF RESOURCES PORTFOLIO INVESTMENT INVESTOR CONFIDENCE INVESTOR PROTECTION EMERGING ECONOMIES INVESTMENT RETURNS RISK ASSESSMENT MACROECONOMIC POLICY ECONOMIC POLICY POLITICAL ASPECTS LOCAL FINANCE CORPORATE GOVERNANCE LEGAL & REGULATORY FRAMEWORK CUSTODY (FINANCE) CLEARING OF SECURITIES TAXATION FOREIGN POLICY The authors look at the investment allocation process employed by portfolio investors in emerging markets. In particular, they examine the first of a two-stage decision process: first, investors create a subset of countries with investments potential, to be analyzed later in further detail; second, they weigh expected returns versus risk and subsequently allocate their funds. The authors hypothesize that the determination of whether a country has potential investment opportunities, or not is influenced by a number of factors, especially related to size, quality of "housekeeping," (macroeconomic policies, political economy, local financial markets, corporate governance, and so on), and efficiency of "plumbing" (legal and regulatory framework, custody, clearing and settlement, taxes, and so on). By interviewing many types of these investors in both the United States and the United Kingdom, the authors delve into their decision-making processes, as well as attempt to uncover the factors they indicate, matter most in defining the "investment opportunities" universe. They determine the relative importance of such housekeeping, and plumbing factors while highlighting the role of external issues, such as index benchmarking and U.S. foreign policy. The authors recognize from the outset that the most profound effects on investment flows, or the required minimum expected returns, arise from improvements or deteriorations in macroeconomic policies. However, at the margin, improvements can be made in country policies that will, for a given macroeconomic situation, improve the ability of a country to attract international investment flows. 2013-06-26T16:40:13Z 2013-06-26T16:40:13Z 2004-03 http://documents.worldbank.org/curated/en/2004/03/3034747/housekeeping-plumbing-investability-emerging-markets http://hdl.handle.net/10986/14203 English en_US Policy Research Working Paper;No.3229 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING AFFILIATES ASSET MANAGEMENT ASSETS ASSETS BANKING INDUSTRY BENCHMARK BONDS CAPITAL FLOWS CORPORATE GOVERNANCE COST OF CAPITAL CREDIT RISK DEBT DECENTRALIZATION DECISION MAKING DEFICITS DEVALUATION DIVERSIFICATION ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMISTS EMERGING MARKETS EQUITY MARKETS EXCHANGE RATE EXPECTED RETURN EXPECTED RETURNS EXPORTS FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEMS FISCAL POLICY FIXED INCOME FORECASTS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKETS FOREIGN INVESTORS GDP GLOBAL CAPITAL GLOBAL INTEREST HEDGE FUNDS INFLATION INSURANCE INTEREST RATE INTEREST RATES IPO LIQUIDITY MACROECONOMIC CONDITIONS MACROECONOMIC POLICY MACROECONOMIC STABILITY MANDATES MARKET FACTORS MARKET RISK MUTUAL FUND MUTUAL FUNDS NUMERICAL VALUE POLICY MAKERS POLITICAL ECONOMY PORTFOLIO PORTFOLIOS PROFITABILITY REGULATORY FRAMEWORK RETIREMENT RISK FACTORS SANCTIONS SECURITIES STATISTICAL ANALYSIS TIME SERIES TRADERS TRANSPARENCY INVESTMENT ENVIRONMENT ALLOCATION OF RESOURCES PORTFOLIO INVESTMENT INVESTOR CONFIDENCE INVESTOR PROTECTION EMERGING ECONOMIES INVESTMENT RETURNS RISK ASSESSMENT MACROECONOMIC POLICY ECONOMIC POLICY POLITICAL ASPECTS LOCAL FINANCE CORPORATE GOVERNANCE LEGAL & REGULATORY FRAMEWORK CUSTODY (FINANCE) CLEARING OF SECURITIES TAXATION FOREIGN POLICY |
| spellingShingle |
ACCOUNTING AFFILIATES ASSET MANAGEMENT ASSETS ASSETS BANKING INDUSTRY BENCHMARK BONDS CAPITAL FLOWS CORPORATE GOVERNANCE COST OF CAPITAL CREDIT RISK DEBT DECENTRALIZATION DECISION MAKING DEFICITS DEVALUATION DIVERSIFICATION ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMISTS EMERGING MARKETS EQUITY MARKETS EXCHANGE RATE EXPECTED RETURN EXPECTED RETURNS EXPORTS FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEMS FISCAL POLICY FIXED INCOME FORECASTS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKETS FOREIGN INVESTORS GDP GLOBAL CAPITAL GLOBAL INTEREST HEDGE FUNDS INFLATION INSURANCE INTEREST RATE INTEREST RATES IPO LIQUIDITY MACROECONOMIC CONDITIONS MACROECONOMIC POLICY MACROECONOMIC STABILITY MANDATES MARKET FACTORS MARKET RISK MUTUAL FUND MUTUAL FUNDS NUMERICAL VALUE POLICY MAKERS POLITICAL ECONOMY PORTFOLIO PORTFOLIOS PROFITABILITY REGULATORY FRAMEWORK RETIREMENT RISK FACTORS SANCTIONS SECURITIES STATISTICAL ANALYSIS TIME SERIES TRADERS TRANSPARENCY INVESTMENT ENVIRONMENT ALLOCATION OF RESOURCES PORTFOLIO INVESTMENT INVESTOR CONFIDENCE INVESTOR PROTECTION EMERGING ECONOMIES INVESTMENT RETURNS RISK ASSESSMENT MACROECONOMIC POLICY ECONOMIC POLICY POLITICAL ASPECTS LOCAL FINANCE CORPORATE GOVERNANCE LEGAL & REGULATORY FRAMEWORK CUSTODY (FINANCE) CLEARING OF SECURITIES TAXATION FOREIGN POLICY Ladekarl, Jeppe Zervos, Sara Housekeeping and Plumbing: The Investability of Emerging Markets |
| geographic_facet |
Europe and Central Asia |
| relation |
Policy Research Working Paper;No.3229 |
| description |
The authors look at the investment
allocation process employed by portfolio investors in
emerging markets. In particular, they examine the first of a
two-stage decision process: first, investors create a subset
of countries with investments potential, to be analyzed
later in further detail; second, they weigh expected returns
versus risk and subsequently allocate their funds. The
authors hypothesize that the determination of whether a
country has potential investment opportunities, or not is
influenced by a number of factors, especially related to
size, quality of "housekeeping," (macroeconomic
policies, political economy, local financial markets,
corporate governance, and so on), and efficiency of
"plumbing" (legal and regulatory framework,
custody, clearing and settlement, taxes, and so on). By
interviewing many types of these investors in both the
United States and the United Kingdom, the authors delve into
their decision-making processes, as well as attempt to
uncover the factors they indicate, matter most in defining
the "investment opportunities" universe. They
determine the relative importance of such housekeeping, and
plumbing factors while highlighting the role of external
issues, such as index benchmarking and U.S. foreign policy.
The authors recognize from the outset that the most profound
effects on investment flows, or the required minimum
expected returns, arise from improvements or deteriorations
in macroeconomic policies. However, at the margin,
improvements can be made in country policies that will, for
a given macroeconomic situation, improve the ability of a
country to attract international investment flows. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Ladekarl, Jeppe Zervos, Sara |
| author_facet |
Ladekarl, Jeppe Zervos, Sara |
| author_sort |
Ladekarl, Jeppe |
| title |
Housekeeping and Plumbing: The Investability of Emerging Markets |
| title_short |
Housekeeping and Plumbing: The Investability of Emerging Markets |
| title_full |
Housekeeping and Plumbing: The Investability of Emerging Markets |
| title_fullStr |
Housekeeping and Plumbing: The Investability of Emerging Markets |
| title_full_unstemmed |
Housekeeping and Plumbing: The Investability of Emerging Markets |
| title_sort |
housekeeping and plumbing: the investability of emerging markets |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/03/3034747/housekeeping-plumbing-investability-emerging-markets http://hdl.handle.net/10986/14203 |
| _version_ |
1764430008765382656 |