World Market Integration through the Lens of Foreign Direct Investors
The authors analyze the unparalleled increase in foreign direct investment to emerging market economies in the past 25 years. Using a large cross-country time-series data set, the authors evaluate the dependence of foreign direct investment on glob...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2003/05/2388824/world-market-integration-through-lens-foreign-direct-investors http://hdl.handle.net/10986/18216 |
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okr-10986-182162021-04-23T14:03:41Z World Market Integration through the Lens of Foreign Direct Investors Albuquerque, Rui Loayza, Norman Serven, Luis ARBITRAGE ASSETS ASYMMETRIC INFORMATION CAPACITY BUILDING CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKET INTEGRATION COST OF CAPITAL COUNTRY OF ORIGIN DEBT DEVALUATION DEVELOPED COUNTRIES DISCOUNT RATE DISCOUNT RATES DISINVESTMENT DOMESTIC CAPITAL MARKETS DOMESTIC STOCK MARKETS ECONOMIC GROWTH EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EQUILIBRIUM EXCHANGE RATE EXCHANGE RATES EXPROPRIATION FINANCIAL MARKETS FOREIGN CAPITAL FOREIGN CAPITAL FLOWS FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTORS FOREIGN INVESTMENT FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKETS GDP GENERAL EQUILIBRIUM MODEL GLOBAL CAPITAL GLOBAL FACTOR GLOBAL FACTORS GLOBALIZATION GROSS DOMESTIC PRODUCT GROWTH RATE IMPORT TARIFFS INCOME INFLATION INFLATION RATE INTEREST RATES INTERNATIONAL INVESTORS INTERNATIONAL MARKET INTERNATIONAL MARKETS INVESTMENT FLOWS MACROECONOMICS MARKET ECONOMIES MARKET FACTORS MARKET IMPERFECTIONS MARKET INTEGRATION MARKET LIBERALIZATION MEASURE OF TRADE MEASURES OF VOLATILITY MIDDLE INCOME COUNTRIES OIL OIL EXPORTERS PORTFOLIO PORTFOLIO EQUITY FLOWS PRICE CHANGES PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PURCHASING POWER REAL EXCHANGE RATE REAL EXCHANGE RATES REAL INTEREST RATE RISK SHARING TAXATION TERMS OF TRADE TIME SERIES TRADE OPENNESS TRANSACTIONS COSTS WAGE RATE WAGE RATES WEALTH WORLD MARKET INTEGRATION CAPITAL MARKET INTEGRATION EMERGING ECONOMIES GLOBAL ENVIRONMENT GLOBAL INTEGRATION FOREIGN DIRECT INVESTMENTS CROSS-COUNTRY EXPERIENCE RISK ASSESSMENT DEVELOPING COUNTRIES MARKET LIBERALIZATION PUBLIC POLICY EVALUATION WORLD MARKET INTEGRATION CAPITAL MARKET INTEGRATION The authors analyze the unparalleled increase in foreign direct investment to emerging market economies in the past 25 years. Using a large cross-country time-series data set, the authors evaluate the dependence of foreign direct investment on global factors or worldwide sources of risk (that is, factors that drive foreign direct investment across several countries). They construct a globalization measure that equals the share of explained variation in direct investment attributable to global factors. The authors show that the globalization measure has increased steadily for industrial and developing countries. For the full sample of countries, the globalization measure rose eightfold from 1985 to 1999. Furthermore, in recent years developing countries' exposure to global factors has approached that of industrial countries, particularly for Latin America. Finally, the globalization measure correlates strongly with measures of capital market liberalization. Overall the authors find strong support for the hypothesis of increased market integration which implies a greater role for worldwide sources of risk. They discuss the implications of the results for public policies regarding capital market liberalization and policies directed at attracting foreign investment. 2014-05-09T18:51:38Z 2014-05-09T18:51:38Z 2003-05 http://documents.worldbank.org/curated/en/2003/05/2388824/world-market-integration-through-lens-foreign-direct-investors http://hdl.handle.net/10986/18216 English en_US Policy Research Working Paper;No. 3060 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| 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 |
ARBITRAGE ASSETS ASYMMETRIC INFORMATION CAPACITY BUILDING CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKET INTEGRATION COST OF CAPITAL COUNTRY OF ORIGIN DEBT DEVALUATION DEVELOPED COUNTRIES DISCOUNT RATE DISCOUNT RATES DISINVESTMENT DOMESTIC CAPITAL MARKETS DOMESTIC STOCK MARKETS ECONOMIC GROWTH EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EQUILIBRIUM EXCHANGE RATE EXCHANGE RATES EXPROPRIATION FINANCIAL MARKETS FOREIGN CAPITAL FOREIGN CAPITAL FLOWS FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTORS FOREIGN INVESTMENT FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKETS GDP GENERAL EQUILIBRIUM MODEL GLOBAL CAPITAL GLOBAL FACTOR GLOBAL FACTORS GLOBALIZATION GROSS DOMESTIC PRODUCT GROWTH RATE IMPORT TARIFFS INCOME INFLATION INFLATION RATE INTEREST RATES INTERNATIONAL INVESTORS INTERNATIONAL MARKET INTERNATIONAL MARKETS INVESTMENT FLOWS MACROECONOMICS MARKET ECONOMIES MARKET FACTORS MARKET IMPERFECTIONS MARKET INTEGRATION MARKET LIBERALIZATION MEASURE OF TRADE MEASURES OF VOLATILITY MIDDLE INCOME COUNTRIES OIL OIL EXPORTERS PORTFOLIO PORTFOLIO EQUITY FLOWS PRICE CHANGES PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PURCHASING POWER REAL EXCHANGE RATE REAL EXCHANGE RATES REAL INTEREST RATE RISK SHARING TAXATION TERMS OF TRADE TIME SERIES TRADE OPENNESS TRANSACTIONS COSTS WAGE RATE WAGE RATES WEALTH WORLD MARKET INTEGRATION CAPITAL MARKET INTEGRATION EMERGING ECONOMIES GLOBAL ENVIRONMENT GLOBAL INTEGRATION FOREIGN DIRECT INVESTMENTS CROSS-COUNTRY EXPERIENCE RISK ASSESSMENT DEVELOPING COUNTRIES MARKET LIBERALIZATION PUBLIC POLICY EVALUATION WORLD MARKET INTEGRATION CAPITAL MARKET INTEGRATION |
| spellingShingle |
ARBITRAGE ASSETS ASYMMETRIC INFORMATION CAPACITY BUILDING CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKET INTEGRATION COST OF CAPITAL COUNTRY OF ORIGIN DEBT DEVALUATION DEVELOPED COUNTRIES DISCOUNT RATE DISCOUNT RATES DISINVESTMENT DOMESTIC CAPITAL MARKETS DOMESTIC STOCK MARKETS ECONOMIC GROWTH EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EQUILIBRIUM EXCHANGE RATE EXCHANGE RATES EXPROPRIATION FINANCIAL MARKETS FOREIGN CAPITAL FOREIGN CAPITAL FLOWS FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTORS FOREIGN INVESTMENT FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKETS GDP GENERAL EQUILIBRIUM MODEL GLOBAL CAPITAL GLOBAL FACTOR GLOBAL FACTORS GLOBALIZATION GROSS DOMESTIC PRODUCT GROWTH RATE IMPORT TARIFFS INCOME INFLATION INFLATION RATE INTEREST RATES INTERNATIONAL INVESTORS INTERNATIONAL MARKET INTERNATIONAL MARKETS INVESTMENT FLOWS MACROECONOMICS MARKET ECONOMIES MARKET FACTORS MARKET IMPERFECTIONS MARKET INTEGRATION MARKET LIBERALIZATION MEASURE OF TRADE MEASURES OF VOLATILITY MIDDLE INCOME COUNTRIES OIL OIL EXPORTERS PORTFOLIO PORTFOLIO EQUITY FLOWS PRICE CHANGES PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PURCHASING POWER REAL EXCHANGE RATE REAL EXCHANGE RATES REAL INTEREST RATE RISK SHARING TAXATION TERMS OF TRADE TIME SERIES TRADE OPENNESS TRANSACTIONS COSTS WAGE RATE WAGE RATES WEALTH WORLD MARKET INTEGRATION CAPITAL MARKET INTEGRATION EMERGING ECONOMIES GLOBAL ENVIRONMENT GLOBAL INTEGRATION FOREIGN DIRECT INVESTMENTS CROSS-COUNTRY EXPERIENCE RISK ASSESSMENT DEVELOPING COUNTRIES MARKET LIBERALIZATION PUBLIC POLICY EVALUATION WORLD MARKET INTEGRATION CAPITAL MARKET INTEGRATION Albuquerque, Rui Loayza, Norman Serven, Luis World Market Integration through the Lens of Foreign Direct Investors |
| relation |
Policy Research Working Paper;No. 3060 |
| description |
The authors analyze the unparalleled
increase in foreign direct investment to emerging market
economies in the past 25 years. Using a large cross-country
time-series data set, the authors evaluate the dependence of
foreign direct investment on global factors or worldwide
sources of risk (that is, factors that drive foreign direct
investment across several countries). They construct a
globalization measure that equals the share of explained
variation in direct investment attributable to global
factors. The authors show that the globalization measure has
increased steadily for industrial and developing countries.
For the full sample of countries, the globalization measure
rose eightfold from 1985 to 1999. Furthermore, in recent
years developing countries' exposure to global factors
has approached that of industrial countries, particularly
for Latin America. Finally, the globalization measure
correlates strongly with measures of capital market
liberalization. Overall the authors find strong support for
the hypothesis of increased market integration which implies
a greater role for worldwide sources of risk. They discuss
the implications of the results for public policies
regarding capital market liberalization and policies
directed at attracting foreign investment. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Albuquerque, Rui Loayza, Norman Serven, Luis |
| author_facet |
Albuquerque, Rui Loayza, Norman Serven, Luis |
| author_sort |
Albuquerque, Rui |
| title |
World Market Integration through the Lens of Foreign Direct Investors |
| title_short |
World Market Integration through the Lens of Foreign Direct Investors |
| title_full |
World Market Integration through the Lens of Foreign Direct Investors |
| title_fullStr |
World Market Integration through the Lens of Foreign Direct Investors |
| title_full_unstemmed |
World Market Integration through the Lens of Foreign Direct Investors |
| title_sort |
world market integration through the lens of foreign direct investors |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2003/05/2388824/world-market-integration-through-lens-foreign-direct-investors http://hdl.handle.net/10986/18216 |
| _version_ |
1764439158789505024 |