HomeDLSU Business & Economics Reviewvol. 9 no. 1 (1998)

An Analysis of the Structural Stability of the Consumption and Investment Functions of Sixteen Emerging Market Economies

Cesar C. Rufino

Discipline: Economics



Over the past several years, considerable interest for equity investment has been generated by the so-called "emerging markets"-capital markets of developing countries mainly in Asia, Latin America and Africa. These emerging market economies include Argentina, Brazil, Chile, Colombia, Greece, India, Indonesia, Jordan, Republic of Korea, Malaysia, Mexico, Nigeria, Pakistan, Philippines, Portugal, Taiwan, Thailand, Turkey, Venezuela and Zimbabwe.

The importance of this group to the global market has been recognized as early as 1981 when the first emerging market country funds were formed to attract investors to purchase stocks in developing economies (Buckberg 1995). At present, a good number of Wall Street brokerage firms trade issues from the stock markets of these countries and the Financial Times tracks securities of 14 emerging markets on a daily basis (Gooptu 1993).