Stock Market Liberalizations and Export Dynamics

38 Pages Posted: 19 Jun 2018 Last revised: 9 May 2022

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: May 5, 2022


The paper shows that foreign investors facilitate a beneficial structural change in the recipient countries. We compute alignment of individual products with the comparative advantage of exporting countries and combine these data with stock market liberalization dates and a new measure of liberalization intensity at the industry-country level. Our difference-in-differences estimations suggest that opening the domestic stock market to foreign investors leads to termination of exports not corresponding to the comparative advantage of the liberalizing country. As their export portfolios move closer to their comparative advantage, the overall export performance of the liberalizing countries also improves. Domestic stock market development does not have the same structural impact. Additional evidence links these results to the superior monitoring skills of foreign investors.

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 (May 5, 2022). 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 negative results from your research you’d like to share?

Paper statistics

Abstract Views
PlumX Metrics