Market Deregulations, Volatility and Spillover Effects: Experiences from Emerging Stockmarkets

  • Due Khuong Nguyen
Part of the Centre for the Study of Emerging Markets Series book series (CSEM)

Abstract

The last two decades have been a period of spectacular development in emerging stockmarkets; both the market size and level of sophistication have rapidly increased over time.1 Most would agree that these developments could not have happened without an intensive course of stockmarket liberalizations undertaken by developing countries in the late 1980s. However, the arrival of 1990s’ financial turbulences in emerging markets (for example Latin America in 1994; Asia in 1997; Russia in 1998) suggests that market openings might induce financial instability and strengthen the volatility of stockmarkets through causing institutional changes, asset price bubbles and irregular shifts in economic activities. This has led to a vast body of research into the relationship between market liberalization and stockmarket volatility in emerging countries (see for example Bekaert and Harvey, 1997; Kim and Singal, 2000; and Miles, 2002). To date, we recognize, however, that this issue is still under debate.

Keywords

Covariance Coherence Autocorrelation Argentina Volatility 

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Copyright information

© Due Khuong Nguyen 2005

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  • Due Khuong Nguyen

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