دانلود رایگان مقاله باز بودن مالی و نقدینگی بازار در بازارهای نوظهور

ABSTRACT

The goal of this study is to explore the effect of financial openness in emerging markets on the domestic financial market liquidity and then to clarify the linkage between financial openness and market liquidity. The empirical results show that higher the degree of the financial market openness enhances the domestic financial market liquidity, and the effect of the financial market openness on the emerging markets is more significance than the developed markets. We expect the empirical results of this study can provide a new insight into the development of emerging financial markets.

4. Conclusions

Capital market globalization has compelled many countries to open up their financial markets in anticipation of the foreign investment required to improve market liquidity. This study samples 11 developed and emerging economies to examine the effects of financial market openness on market liquidity. To ensure the robustness of the study, two proxy variables are applied to measure financial market liquidity, with a further four to estimate financial market openness. The main empirical findings are as follows: First, financial market openness is significantly positively related to financial market liquidity, suggesting that opening up financial markets renders markets more mobile. Second, the effects of financial market openness on financial market liquidity are more significant in emerging economies than in developed ones. Accordingly, emerging economies opening up their financial markets facilitates domestic financial reform, thereby reducing information asymmetry, adverse selection, and moral hazards within the markets, and subsequently improving market efficiency, liquidity, and the potential for attracting foreign investment.