TY  - JOUR
AU  - Edison,Hali J.
AU  - Warnock,Francis E.
TI  - Cross-border Listings, Capital Controls, and Equity Flows To Emerging Markets
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12589
PY  - 2006
Y2  - October 2006
UR  - http://www.nber.org/papers/w12589
L1  - http://www.nber.org/papers/w12589.pdf
N1  - Author contact info:
Hali Edison
International Monetary Fund
Asia and Pacific Department
Washington, DC  20431
Tel: 202-623-6946
Fax: 202-589-6946
E-Mail: hedison@imf.org

Francis E. Warnock
Darden Business School
University of Virginia
Charlottesville, VA 22906-6550
Tel: 434/924-6076
Fax: 434/243-8945
E-Mail: warnockf@darden.virginia.edu
AB  - We investigate the impact of two types of financial liberalizations on short- and long-horizon capital flows to emerging markets in a framework that controls for push and pull factors. The first type of liberalization, a reduction in capital controls, is countrywide but uncertain, because its extent and permanence is not known with certainty.  The second type, a cross-border listing, is a firm-level liberalization that has no uncertainty.  Consistent with theoretical predictions, we find that the deterministic cross-listing results in an immediate but short-lived increase in capital inflows.  In contrast, the uncertain reduction in capital controls results in increased inflows only over a longer horizon, if at all.
ER  -