TY  - JOUR
AU  - Levine,Ross
AU  - Schmukler,Sergio L.
TI  - Migration, Spillovers,and Trade Diversion: The Impact of Internationalization on Stock Market Liquidity
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9614
PY  - 2003
Y2  - April 2003
UR  - http://www.nber.org/papers/w9614
L1  - http://www.nber.org/papers/w9614.pdf
N1  - Author contact info:
Ross Levine
Haas School of Business
University of California at Berkeley
545 Student Services Building, #1900 (F685)
Berkeley, CA 94720-1900
Tel: 510-643-1419
E-Mail: Ross_levine@haas.berkeley.edu

Sergio Schmukler
The World Bank
MSN MC3-301
1818 H Street, N.W.
Washington, DC 20433
Tel: 202-458-4167
Fax: 202-522-3518
E-Mail: Sschmukler@worldbank.org
AB  - What is the impact of firms that cross-list, issue depositary receipts, or raise capital in international stock markets on the liquidity of remaining firms in domestic markets? Using a panel of over 3,200 firms from 55 countries during 1989-2000, we find that internationalization reduces the liquidity of domestic firms through two channels. First, the trading of international firms migrates from domestic to international markets and the reduction in domestic liquidity of international firms has negative spillover effects on domestic firm liquidity. Second, there is trade diversion within domestic markets as liquidity shifts out of domestic firms and into international firms.
ER  -