Stock Markets in Transition Economies

Financial Sector Discussion Paper No. 5

32 Pages Posted: 1 Sep 2000

See all articles by Stijn Claessens

Stijn Claessens

Bank for International Settlements (BIS)

Simeon Djankov

London School of Economics & Political Science (LSE); Peter G. Peterson Institute for International Economics

Daniela Klingebiel

World Bank - Policy Unit

Date Written: September 2000

Abstract

Stock markets in transition economies are generally underdeveloped, with low market capitalization and turnover, even when compared to most emerging markets. Poor macro-conditions, weak legal protection for minority shareholders and limited development of institutional investors have impeded their development. While stock markets can be expected to grow in most transition economies, their scale will remain small relative to world stock markets. Furthermore, many corporations from transition economies are already raising funds and listing their shares abroad. Also given global stock market consolidation, this suggests that most transition economies are best off integrating their markets with those abroad.

Suggested Citation

Claessens, Stijn and Djankov, Simeon and Klingebiel, Daniela, Stock Markets in Transition Economies (September 2000). Financial Sector Discussion Paper No. 5. Available at SSRN: https://ssrn.com/abstract=240703 or http://dx.doi.org/10.2139/ssrn.240703

Stijn Claessens (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

Simeon Djankov

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

Daniela Klingebiel

World Bank - Policy Unit ( email )

1818 H Street NW
Room MC 9-903
Washington, DC 20433
United States
202-473-7470 (Phone)
202-522-2031 (Fax)

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