학회소식
학회소식
[2010년 제 4차] Financial Liberalization and Liquidity Commonality
작성자 : 관리자
조회수 : 1082
게시일 :
2010-12-09
The benefits and costs of international financial liberalization have been debated for decades. In this paper, I examine another dimension of this issue by investigating the impact of financial market liberalization on liquidity and liquidity commonality among emerging economies. Using a sample of 20 emerging countries observed over 20 years, I find that opening up the local market to foreign investors increase the liquidity of the local market through reducing information asymmetries. However, I also find that financial liberalization also brings about higher commonality in liquidity and hence the liquidity risk .Further investigation shows that the increase in liquidity commonality arises from an increase in inventory risk due to financial liberalization.