Abstract: The frontier markets are the areas with underdeveloped capital markets, which means the capitalization of a frontier stock market as a percentage of GDP would be low. The frontier economies probably chime more closely with most people's idea of emerging markets. These markets tend to be concentrated in the Middle East and Africa and would have all the political and economic risk that has historically been associated with emerging economies. The Middle Eastern countries are considered frontier because of corporate governance issues or onerous restrictions on foreign ownership of shares, rather than their net wealth. However, the African markets are considered frontier because they have only just opened up to new investment and lie at the bottom of the global economic tables. GDP per capita would tend to be low and stock markets would have just a handful of companies listed. The frontier markets would have their drawbacks, with liquidity a key concern. Frontier markets would also tend to have more of the political risks traditionally associated with emerging markets. The domestic focus of the frontier markets is both a risk and an opportunity.
Publication Year: 2012
Publication Date: 2012-01-02
Language: en
Type: other
Indexed In: ['crossref']
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