Stock Market Liberalizations and Export Dynamics

71 Pages Posted: 19 Jun 2018 Last revised: 1 Apr 2019

See all articles by Melise Jaud

Melise Jaud

World Bank

Madina Kukenova

University of Lausanne - Department of Economics (DEEP)

Martin Strieborny

Lund University

Multiple version iconThere are 2 versions of this paper

Date Written: March 29, 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 (March 29, 2019). Available at SSRN: or

Melise Jaud

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Madina Kukenova

University of Lausanne - Department of Economics (DEEP) ( email )

Lausanne, 1015
021-692-3673 (Phone)

Martin Strieborny (Contact Author)

Lund University ( email )

P.O. Box 7082
S-220 07 Lund

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