Relative Growth in the Market Capitalization of Emerging Countries Term Paper by agassner

Relative Growth in the Market Capitalization of Emerging Countries
An overview of the growing importance of emerging economies in global economic activity.
# 147567 | 1,168 words | 3 sources | APA | 2011 | AU
Published on May 13, 2011 in Business (Industries) , Economics (International) , Business (General)


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Description:

This paper looks at how equity markets in emerging economies increased due to the strong economic growth and financial development within their economies. It also provides explanatory graphs showing the capitalization of emerging markets and explains how the wider wealth gaps mean that those economies need external investors to provide a source of equity. This paper contains figures and tables.

Outline:
Overview
The Relative Growth
Investor and Sector Variations
Volatility
Conclusion

From the Paper:

"Brazil, China, India and Russia currently belong to the top four performing emerging market economies. China experienced growth of more than a factor of two in market capitalisation as a percentage of GDP from 2004-2010 (Graph 2, RBA 2010). India has experienced similar figures, having more than doubled its growth of market capitalisation in the same period. Brazil almost doubled its market capitalisation from 2004-2010. Russia experienced huge growth from 2004-2006 but then a decrease from 2006-2010 largely because of the big effect of energy prices on Russian equities. In large part, this growth has been spurred by the implementation of sound policies which have allowed domestic and international investors easier access to equity markets, favourable external factors such as high commodity prices and careful macroeconomic management. Stock market activity has increased substantially in many developing countries due to these factors."

Sample of Sources Used:

  • Bailey, O. (December 2010), "Developments in Emerging Equity Markets", Bulletin, RBA, pp. 53-59
  • Hunt & Terry (2008), Chapters 6, 9 and 10
  • Practical stock investing 2011, accessed 22 April 2011, <http://practicalstockinvesting.com/2011/02/09/investor-shift-away-from-emerging-equity-markets-is-picking-up-steam/

Cite this Term Paper:

APA Format

Relative Growth in the Market Capitalization of Emerging Countries (2011, May 13) Retrieved September 19, 2020, from https://www.academon.com/term-paper/relative-growth-in-the-market-capitalization-of-emerging-countries-147567/

MLA Format

"Relative Growth in the Market Capitalization of Emerging Countries" 13 May 2011. Web. 19 September. 2020. <https://www.academon.com/term-paper/relative-growth-in-the-market-capitalization-of-emerging-countries-147567/>

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