Stock Market Liberalizations and Export Dynamics

71 Pages Posted: 19 Jun 2018 Last revised: 7 Jun 2019

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: June 5, 2019


We find that granting foreign investors access to domestic stock markets facilitate efficiency-enhancing product specialization 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 play the same disciplining role in forcing termination of inefficient exports, suggesting a unique role for foreign investors in improving resource allocation in the real economy.

Keywords: stock market liberalizations, disciplining role of foreign investors, export dynamics

JEL Classification: G15, F65, O16

Suggested Citation

Jaud, Melise and Kukenova, Madina and Strieborny, Martin, Stock Market Liberalizations and Export Dynamics (June 5, 2019). 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


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