IDEAS home Printed from https://ideas.repec.org/a/oup/wbecrv/v9y1995i1p109-29.html
   My bibliography  Save this article

U.S. Equity Investment in Emerging Stock Markets

Author

Listed:
  • Tesar, Linda L
  • Werner, Ingrid M

Abstract

This article examines U.S. equity flows to emerging stock markets from 1978 to 1991 and draws three main conclusions. First, despite the recent increase in U.S. equity investment in emerging stock markets, the U.S. portfolio remains strongly biased toward domestic equities. Second, of the fraction of the U.S. portfolio that is allocated to foreign equity investment, the share invested in emerging stock markets is roughly proportional to the share of the emerging stock markets in the global market capitalization value. Third, the volatility of U.S. transactions in emerging-market equities is higher than in other foreign equities. The normalized volatility of U.S. transactions appears to be falling over time, however, and we find no relation between the volume of U.S. transactions in foreign equity and local turnover rates or volatility of stock returns. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Tesar, Linda L & Werner, Ingrid M, 1995. "U.S. Equity Investment in Emerging Stock Markets," World Bank Economic Review, World Bank Group, vol. 9(1), pages 109-129, January.
  • Handle: RePEc:oup:wbecrv:v:9:y:1995:i:1:p:109-29
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:wbecrv:v:9:y:1995:i:1:p:109-29. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/wrldbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.