Reshaping financial systems. New technologies and financial innovations - evidence from the United States, Mexico and Brazil
The paper unveils whether ICT diffusion determines development of financial innovation in emerging economies. Particularly, we examine the impact of ICT adoption on changing values of exchange traded funds in Brazil and Mexico, comparing it to the United States as reference country (benchmark). Our methodological framework includes descriptive statistics, logistic growth models (used to estimate ETFs growth) and generalized linear models (used to check for relationship between ICT adoption and ETFs value). In each case we run country-specific estimates. Data on ICT adoption (approximated by Internet Users and Fixed Broadband Subscriptions) are exclusively derived from World Telecommunication/ICT Indicators Database 2012 (16th edition), and exchange traded funds from funds’ providers and reports published by BlackRock. Analysis period is set for 2000-2012. Empirical findings collectively conclude that in all three countries, growth of ICT was pervasive, and this was accompanied by fast development of exchange traded funds in Mexico and in the United States, measured by increases in assets under management. Moreover, in the period 2002-2012 Mexico has caught up with the United States in terms of ETFs share in total investment funds (sum of assets of ETFs and mutual funds). In Brazil, even though ETFs growth rates were high, in 2012 share of ETFs in investment funds remained at a relatively lower level of 0.17%. Additionally, the relationship between ICT adoption and ETFs development was reported as strong, positive and statistically significant in each of analyzed countries.
|Date of creation:||Jan 2014|
|Date of revision:|
|Contact details of provider:|| Postal: ul. Narutowicza 11/12, 80-233 Gdańsk|
Phone: +48 58 347-18-99
Fax: +48 58 347-18-61
Web page: http://www.zie.pg.gda.pl
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- W. Scott Frame & Lawrence White, 2002.
"Empirical Studies of Financial Innovation: Lots of Talk, Little Action?,"
02-18, New York University, Leonard N. Stern School of Business, Department of Economics.
- W. Scott Frame & Lawrence J. White, 2004. "Empirical Studies of Financial Innovation: Lots of Talk, Little Action?," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 116-144, March.
- W. Scott Frame & Lawrence J. White, 2002. "Empirical studies of financial innovation: lots of talk, little action?," FRB Atlanta Working Paper 2002-12, Federal Reserve Bank of Atlanta.
- Laurent Deville, 2008. "Exchange Traded Funds: History, Trading and Research," Post-Print halshs-00162223, HAL.
- repec:dau:papers:123456789/903 is not listed on IDEAS
- Bekaert, Geert & Harvey, Campbell & Lundblad, Christian T, 2006.
"Liquidity and Expected Returns: Lessons from Emerging Markets,"
CEPR Discussion Papers
5946, C.E.P.R. Discussion Papers.
- Geert Bekaert & Campbell R. Harvey & Christian Lundblad, 2007. "Liquidity and Expected Returns: Lessons from Emerging Markets," Review of Financial Studies, Society for Financial Studies, vol. 20(6), pages 1783-1831, November.
- Geert Bekaert & Campbell R. Harvey & Christian Lundblad, 2005. "Liquidity and Expected Returns: Lessons From Emerging Markets," NBER Working Papers 11413, National Bureau of Economic Research, Inc.
- Geroski, Paul A, 1999.
"Models of Technology Diffusion,"
CEPR Discussion Papers
2146, C.E.P.R. Discussion Papers.
- Lechman, Ewa, 2013.
"New technologies adoption and diffusion patterns in developing countries. An empirical study for the period 2000-2011,"
46074, University Library of Munich, Germany.
- Ewa Lechman, 2013. "New Technologies Adoption And Diffusion Patterns In Developing Countries. An Empirical Study For The Period 2000-2011," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 8(4), pages 79-106, December.
- Ewa Lechman, 2013. "New technologies adoption and diffusion patterns in developing countries - an empirical study for the period 2000-2011," GUT FME Working Paper Series A 5, Faculty of Management and Economics, Gdansk University of Technology.
When requesting a correction, please mention this item's handle: RePEc:gdk:wpaper:20. 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: (Wojciech Drapinski)
If references are entirely missing, you can add them using this form.