Stock Market Liberalizations and Export Dynamics

46 Pages Posted: 19 Jun 2018 Last revised: 29 Nov 2021

See all articles by Melise Jaud

Melise Jaud

World Bank

Madina Kukenova

Webster University Geneva; Business School Lausanne

Martin Strieborny

University of Glasgow - Adam Smith Business School

Multiple version iconThere are 2 versions of this paper

Date Written: November 25, 2021


Foreign investors facilitate efficiency-enhancing structural change in the recipient countries. After countries liberalize their stock markets and allow foreign investors to acquire equity stakes in domestic firms, products that do not correspond to the liberalizing countries' comparative advantage disappear disproportionately faster from their export portfolios. At the same time, the overall long-term export performance of the liberalizing countries improves. Domestic stock market development does not have the same disciplining effect in terminating inefficient exports. Foreign investors thus play a unique role in improving resource allocation in the real economy.

Keywords: financial liberalization and structural change, disciplining role of foreign investors, export dynamics

JEL Classification: G15, G34, F65, F11

Suggested Citation

Jaud, Melise and Kukenova, Madina and Strieborny, Martin, Stock Market Liberalizations and Export Dynamics (November 25, 2021). Available at SSRN: or

Melise Jaud

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Madina Kukenova

Webster University Geneva ( email )

15, route de Collex
Bellevue, 1293

Business School Lausanne ( email )

Route de la Maladière 21
PO Box 73
Lausanne, 1022

Martin Strieborny (Contact Author)

University of Glasgow - Adam Smith Business School ( email )

Glasgow, Scotland
United Kingdom


Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics