Publication:
Contagion and Firms’ Internationalization in Latin America : Evidence from Mexico, Brazil, and Chile

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dc.contributor.authorSakho, Yaye Seynabou
dc.date.accessioned2012-06-22T20:14:27Z
dc.date.available2012-06-22T20:14:27Z
dc.date.issued2006-12
dc.description.abstractThe author investigates whether contagion matters when emerging market firms cross-list their stocks in a developed capital market. She develops a rational expectations model where financial markets are segmented along emerging markets' borders and contagion spreads from one emerging market to another through the actions of international investors rebalancing their portfolio using stocks cross-listed in the developed market. The author finds that contagion is a cost of internationalization as cross-listed stocks are more affected by contagion than pure domestic stocks. Furthermore, a welfare analysis of international cross-listing versus financial autarky suggests that the benefits of internationalization in terms of less information asymmetry and better market efficiency offset the costs of contagion. Her model is able to explain some transmission of the 1998 Brazilian crisis to Mexico and Chile.en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/12/7245802/contagion-firms-internationalization-latin-america-evidence-mexico-brazil-chile
dc.identifier.doi10.1596/1813-9450-4076
dc.identifier.urihttps://hdl.handle.net/10986/8859
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4076
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectASSETS
dc.subjectASYMMETRIC INFORMATION
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKETS
dc.subjectCONTAGION
dc.subjectCRISIS AFFECTED
dc.subjectDEMAND CURVE
dc.subjectDEMAND FUNCTIONS
dc.subjectDOMESTIC MARKET
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKETS
dc.subjectEQUILIBRIUM
dc.subjectEQUILIBRIUM PRICES
dc.subjectEXCESS DEMAND
dc.subjectEXPECTED RETURNS
dc.subjectEXTERNALITY
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL INTERNATIONALIZATION
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKETS
dc.subjectFOREIGN INVESTORS
dc.subjectFOREIGN OWNERSHIP
dc.subjectFOREIGN SECURITIES
dc.subjectFUTURE RESEARCH
dc.subjectGLOBALIZATION
dc.subjectHEDGE FUNDS
dc.subjectINFORMATION ASYMMETRY
dc.subjectINSURANCE
dc.subjectINTEREST RATE
dc.subjectINTERNATIONAL CAPITAL MARKET
dc.subjectINTERNATIONAL CAPITAL MARKETS
dc.subjectINTERNATIONAL FIRMS
dc.subjectINTERNATIONAL INVESTORS
dc.subjectINVESTMENT BARRIERS
dc.subjectLIQUIDATION
dc.subjectLIQUIDITY
dc.subjectM1
dc.subjectM2
dc.subjectM3
dc.subjectMACROECONOMIC POLICY
dc.subjectMARKET INTEGRATION
dc.subjectMARKET PRICES
dc.subjectMARKET SEGMENTATION
dc.subjectMARKET TRANSPARENCY
dc.subjectMUTUAL FUNDS
dc.subjectPORTFOLIO
dc.subjectPORTFOLIOS
dc.subjectPRICE CHANGE
dc.subjectPRICE CHANGES
dc.subjectPRICE DECREASE
dc.subjectPRICE DECREASES
dc.subjectPRICE EFFECT
dc.subjectPRICES
dc.subjectRATE OF RETURN
dc.subjectRISK AVERSION
dc.subjectRISK EXPOSURE
dc.subjectSALE
dc.subjectSALES
dc.subjectSECURITIES MARKETS
dc.subjectSHORT SALES
dc.subjectSPREAD
dc.subjectSTOCK PRICES
dc.subjectSTOCKS
dc.subjectTRADERS
dc.subjectUTILITY FUNCTIONS
dc.subjectVOLATILITY
dc.subjectWEALTH
dc.titleContagion and Firms’ Internationalization in Latin America : Evidence from Mexico, Brazil, and Chileen
dspace.entity.typePublication
okr.crossref.titleContagion And Firms' Internationalization In Latin America : Evidence From Mexico, Brazil, And Chile
okr.date.doiregistration2025-04-10T09:48:36.465210Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2006/12/7245802/contagion-firms-internationalization-latin-america-evidence-mexico-brazil-chile
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid258681468048533992
okr.identifier.doi10.1596/1813-9450-4076
okr.identifier.externaldocumentum000016406_20061205151947
okr.identifier.internaldocumentum7245802
okr.identifier.reportWPS4076
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/12/05/000016406_20061205151947/Rendered/PDF/wps4076.pdfen
okr.region.administrativeLatin America & Caribbean
okr.topicEconomic Theory and Research
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicInternational Economics and Trade::Access to Markets
okr.topicInternational Economics and Trade
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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