Do Implicit Barriers Matter for Globalization?

A-Tier
Journal: The Review of Financial Studies
Year: 2013
Volume: 26
Issue: 7
Pages: 1694-1739

Authors (3)

Francesca Carrieri (not in RePEc) Ines Chaieb (Swiss Finance Institute) Vihang Errunza (not in RePEc)

Score contribution per author:

1.345 = (α=2.02 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:oup:rfinst:v:26:y:2013:i:7:p:1694-1739
Journal Field
Finance
Author Count
3
Added to Database
2026-01-25