The Best of Both Worlds: Accessing Emerging Economies via Developed Markets

Joon Woo Bae, Redouane Elkamhi, Mikhail Simutin
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引用次数: 20

Abstract

A growing body of evidence suggests that the benefits of international diversification via developed markets have dramatically declined. While emerging markets still offer diversification opportunities, their public equity indices capture only a fraction of economic activity of emerging countries. We propose a diversification approach that exploits the global connectedness of developed countries to gain exposure to emerging countries overall economies rather than their shallow equity markets. In doing so, we demonstrate that developed markets still offer substantial diversification benefits beyond those available through equity indices. Our results suggest that relying on equity indices to assess diversification benefits understates diversification gains.
两全其美:通过发达市场进入新兴经济体
越来越多的证据表明,通过发达市场实现国际多元化的好处已大幅下降。尽管新兴市场仍提供多元化机会,但它们的公共股票指数只反映了新兴国家经济活动的一小部分。我们提出了一种多样化的方法,利用发达国家的全球连通性来获得新兴国家整体经济的敞口,而不是其浅薄的股票市场。在这样做的过程中,我们证明了发达市场仍然提供了比股票指数更大的多元化收益。我们的研究结果表明,依靠股票指数来评估多元化收益低估了多元化收益。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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