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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/27123
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| Title: | On the Formation and Structure of International Exchanges |
| Authors: | Clayton, Matthew J.
Jorgensen, Bjorn N.
Kavajecz, Kenneth A. |
| Issue Date: | 14-Sep-1999 |
| Series/Report no.: | FIN-99-057 |
| Abstract: | We investigate the formation and structure of 248 financial exchanges
throughout the world. First, we empirically analyze the determinants of
exchange formation as well as the impact of exchange formation on the
domestic country's economy. Second, conditional on formation, we use a
probit model to relate the choice of trading mechanism to the
characteristics of the economic environment in which the exchange
exists. We find that the main determinants of exchange formation in a
country are the degree of economic freedom, the growth of the economy,
the availability of technology, and the legal system. In addition, we
find that the impact of exchange formation on the macro economy is
limited to a reduction in the growth of the monetary aggregates with no
significant impact on productivity. Lastly, our results show that the
choice of trading mechanism depends on the country's economic
development, the degree of competition, and the extent of economic freedom. |
| URI: | http://hdl.handle.net/2451/27123 |
| Appears in Collections: | Finance Working Papers
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