dc.contributor.author
Prates, Daniela
dc.contributor.author
Fritz, Barbara
dc.contributor.author
de Paula, Luiz Fernando
dc.date.accessioned
2024-03-13T08:39:10Z
dc.date.available
2024-03-13T08:39:10Z
dc.identifier.uri
https://refubium.fu-berlin.de/handle/fub188/42779
dc.identifier.uri
http://dx.doi.org/10.17169/refubium-42495
dc.description.abstract
This paper seeks to fill a gap in the literature on frontier market economies (FMEs) with the following two research questions: (i) Which are the drivers of FMEs’ integration into financial globalisation? (ii) What explains the greater vulnerability of FMEs compared to emerging market economies (EMEs) to global financial shocks? We argue that the emergence of FMEs as a new group of the financial periphery fills a vacuum left for global investors by the major EMEs, whose spreads declined in the past decade due to high foreign currency reserve accumulation and other EME-related factors. To answer the second question, we introduce the concept of financial hierarchy as a second layer of the currency hierarchy: while the currency hierarchy is organized by the different degrees of liquidity premia currencies offer, in the financial hierarchy, not currencies, but financial assets are placed according to the nominal yield. While FMEs’ currencies have a lower liquidity premium than those of EMEs, the difference between them is not vast – as both are not accepted at the international level – and are insufficient to explain FMEs’ greater vulnerability to external financial shocks. We argue in the paper that this vulnerability stems mainly from the position of FMEs’ at the bottom of the financial hierarchy, which results in a different pattern of international financial integration.
en
dc.format.extent
17 Seiten
dc.rights.uri
https://creativecommons.org/licenses/by/4.0/
dc.subject
frontier market economies
en
dc.subject
financial periphery
en
dc.subject
financial globalisation
en
dc.subject
patterns of international financial integration
en
dc.subject.ddc
300 Sozialwissenschaften::330 Wirtschaft::330 Wirtschaft
dc.title
Frontier-market economies as a new group of the financial periphery: patterns and transmission channels of global shocks
dc.type
Wissenschaftlicher Artikel
dcterms.bibliographicCitation.doi
10.4337/ejeep.2023.0106
dcterms.bibliographicCitation.journaltitle
European Journal of Economics and Economic Policies
dcterms.bibliographicCitation.number
2
dcterms.bibliographicCitation.pagestart
282
dcterms.bibliographicCitation.pageend
298
dcterms.bibliographicCitation.volume
20
dcterms.bibliographicCitation.url
https://doi.org/10.4337/ejeep.2023.0106
refubium.affiliation
Lateinamerika-Institut (LAI)
refubium.resourceType.isindependentpub
no
dcterms.accessRights.openaire
open access
dcterms.isPartOf.eissn
2052-7772
refubium.resourceType.provider
WoS-Alert