The inevitably large influence of fast-growing China and India on global financial markets creates a global interest in their getting their capital account liberalisation right (Tseng and Cowen, 2006; Winters and Yusuf, 2007; Bussière and Mehl, 2008). Both economies have set further capital account opening as their medium-term policy goal (RBI, 2006; SAFE, 2008). An understanding of the challen...

The capital-allocation role of financial markets rests on the informational efficiency of security prices. For the capital allocation determined by markets to be efficient, it is essential that security prices reflect all relevant information fully and accurately. Then, what types of security markets are the most conducive to price discovery and information incorporation? To investigate these i...

Capital Assets Pricing Model is used as a tool for the estimation of Investments in Capital Markets with the relation of Expected return and Risk on Securities. This study examines the applicability of CAPM on Pakistan Stock Markets and Karachi Stock Exchange being the main capital market of Pakistan is taken for the study. The analysis is done by taking a sample of 10 performing companies of 1...

Panel analysis of 20 industrial countries shows evidence for pro-cyclicality of capital gains on domestic stock markets in particular over a medium term horizon. Thus, with cross-border ownership of portfolio equity investments, potential for international smoothing of domestic output fluctuations by means of the capital gains channel is found. Individual country analysis reveals substantial he...

Economic Dynamics From a linear, perfectly rational view towards bounded rationality, non-linearity and complex adaptive systems Global challenges of capital markets integration Modern economics in action in poor countries An interview with development economist Economic Dynamics From a linear, perfectly rational view towards bounded rationality, non-linearity and complex adaptive systems Globa...

The article is analyzing the positions of China in global capital markets, and factors that determine them. It shows trends features attracting foreign direct investment China, exporting Chinese abroad, portfolio investments to China. aspects Belt Road Initiative role Hong Kong as an international financial center are also considered. evolution currency market regulation dynamics Yuan exchange ...

Capital markets perform two distinct functions: provision of capital and facilitation of good governance through information production and monitoring. I argue that the governance function has more impact on the efficiency with which resources are utilized within the firm. Based on industry level data across thirty-eight countries, I present evidence suggesting a positive relation between marke...

Capital markets perform two distinct functions: provision of capital and facilitation of good governance through information production and monitoring. I argue that the governance function has more impact on the efficiency with which resources are utilized within the firm. Based on industry level data across thirty-eight countries, I present evidence suggesting a positive relation between marke...

We develop a model of financially constrained arbitrage, and use it to study the dynamics of arbitrage capital, liquidity, and asset prices. Arbitrageurs exploit price discrepancies between assets traded in segmented markets, and in doing so provide liquidity to investors. A collateral constraint limits their positions as a function of capital. We show that the dynamics of arbitrage activity ar...