Published in «Journal of International Economic Affairs»1 / 2019
DOI: 10.18334/eo.9.1.40474

The fundamental characteristics of emerging markets

Dashkin Renat Muzafyarovich, Kazan Federal University, Institute of Management, Economics and Finance, Russia

Dashkin Eldar Muzafyarovich, Saratov Socio-Economic Institute of Plekhanov Russian University of Economics, Russia

Khasanov Timur Ildarovich, Kazan Federal University, Institute of Management, Economics and Finance, Russia

Фундаментальные характеристики формирующихся рынков - View in Russian

 Download PDF | Downoads: 85

The study attempts to generalize the most characteristic economic features for a group of emerging markets. The issue of classification of countries by international institutions and analytical and rating agencies is considered. On the basis of extensive statistical data the characteristics of the main groups of economic indicators of emerging markets – investment, macroeconomic and financial, are given. Much of the work is devoted to the comparative characteristics of the level of development of the financial system of developing and developed countries. In conclusion, the author's definition of the emerging economy is given. The study may be of interest both to the scientific community as part of the study of issues related to emerging markets and their condition, as well as to representatives of the investment community, considering potential investments of assets in the jurisdictions of developing countries.


emerging markets, financial development, investment climate, investment risks, macroeconomics

JEL-Classification: E44, F21, F30, G15, G32

Dashkin R.M., Dashkin E.M., Khasanov T.I. (2019). The fundamental characteristics of emerging markets [Fundamentalnye kharakteristiki formiruyuschikhsya rynkov]. Journal of International Economic Affairs, 9(1). (in Russian). – doi: 10.18334/eo.9.1.40474.

References (transliterated):
Abu-Bader S., Abu-Qarn A.S. (2008). Financial development and economic growth: Empirical evidence from six MENA countries Review of Development Economics. (12(4)). 803-817. doi: 10.1111/j.1467-9361.2008.00427.x.
Amato Jeffrey D., Stefan Gerlach (2002). Inflation Targeting in Emerging Market and Transition Economies: Lessons After a Decade European Economic Review. 46 (4-5). 781-790.
Ankudinov A.B., Dashkin R.M., Dashkin E.M. (2018). Otsenka determinant investitsionnoy aktivnosti rossiyskikh nefinansovyh kompaniy [Estimation of the determinants of investment activity of Russian non-financial companies]. Russian Journal of Entrepreneurship. 19 (4). 1175-1188. (in Russian). doi: 10.18334/rp.19.4.38903.
Arcand J.L., Berkes E., Panizza U. (2015). Too much finance? Journal of Economic Growth. (20(2)). 105-148. doi: 10.1007/s10887-015-9115-2.
Arestis P., Demetriades P.O., Luintel K.B. (2001). Financial Development and Economic Growth: The Role of Stock Markets Journal of Money, Credit, and Banking. (33(1)). 16-41.
Beck T., Demirgü-Kunt A., Levine R. (2010). Financial institutions and markets across countries and over time: The updated financial development and structure database World Bank Economic Review. (24(1)). 77-92. doi: 10.1093/wber/lhp01.
Beck T.,Levine R. (2004). Stock Market, Banks and Growth: Panel Evidence Journal of Banking and Finance. (28(3)). 423-442.
Boubaker S., Nguyen D.K., Piljak V., Savvides A. (2019). Financial development, government bond returns, and stability: International evidence Journal of International Financial Markets, Institutions and Money. doi: 10.1016/j.intfin.2019.02.006.
Boyd J.H., R. Levine, Smith B.D. (2001). The Impact of Inflation on Financial Sector Performance Journal of Monetary Economics. (47(2)). 221-248.
Caballero R., Krishnamurthy A. (2005). Exchange Rate Volatility and the Credit Channel in Emerging Markets: A Vertical Perspective International Journal of Central Banking. (1). 207-245.
Country Classification Methodology. S&P Dow Jones Retrieved from
Country and Lending GroupsWorld Bank. Retrieved from
Damodaran Aswath Equity Risk Premiums (ERP): Determinants, Estimation and Implications – The 2016 Retrieved from
Damodaran’s data on marketsPages. Retrieved from
Damodaran’s data on marketsPeople. Retrieved from
Dashkin R.M., Dashkin E.M. (2018). Issledovanie aspektov finansovogo razvitiya stran s formiruyuscheysya ekonomikoy [The study of aspects of financial development of countries with emerging economies]. Journal of International Economic Affairs. 8 (3). 351-362. (in Russian). doi: 10.18334/eo.8.3.39394.
Desbordes R., Wei S. (2017). The effects of financial development on foreign direct investment Journal of Development Economics. (127). 153-168.
Disyatat P., Galati G. (2007). The effectiveness of foreign exchange intervention in emerging market countries Journal of International Money and Finance. 26 (3). 383-400.
Equity Country Classification ProcessFtse. Retrieved from
Estrada J. (2002). Systematic Risk in Emerging Markets: The D-CAPM Emerging Markets Review. 3 (4). 365-379.
Farooq O., Ahmed N. (2018). Does inflation affect sensitivity of investment to stock prices? evidence from emerging markets Finance Research Letters. (25). 160-164. doi: 10.1016/
Financial Structure DatabaseWorld Bank. Retrieved from
Global Financial Development Report 2017World Bank. Retrieved from
Gupta G., Mahakud J. (2019). Alternative measure of financial development and investment-cash flow sensitivity: Evidence from an emerging economy Financial Innovation. (5(1)). doi: 10.1186/s40854-018-0118-9.
Hadhri S., Ftiti Z. (2019). Asset allocation and investment opportunities in emerging stock markets: Evidence from return asymmetry-based analysis Journal of International Money and Finance. (93). 187-200. doi: 10.1016/j.jimonfin.2019.01.002.
Hardie I., Rethel L. (2019). Financial structure and the development of domestic bond markets in emerging economies Business and Politics. (21(1)). 86-112. doi: 10.1017/bap.2018.11.
Hookey J. (2001). Emerging markets: a practical guide for corporations, lenders, and investors New York: Wiley.
Levine R. (2002). Banking-Based or Market-Based Financial Systems: Which Is Better? Journal of Financial Intermediation. (11(1)). 398-428.
Levine R. (2005). Finance and Growth: Theory and Evidence. Philippe Aghion & Steven Durlauf (ed.) Handbook of Economic Growth. 1 (12). 865-934.
Lucas R. E., Jr. (1988). On the Mechanism of Economics Development Journal of Monetary Economics. (22(1)). 3-42.
Miller R. (1998). Selling to Newly Emerging Markets New York: Quorum Books.
Pearson L. (1969). Partners in Development: Report of the Commission on International Development New York: Praeger Publishers.
Shen C., Fan X., Huang D., Zhu H., Wu M. (2018). Financial development and economic growth: Do outliers matter? Emerging Markets Finance and Trade. (54(13)). 2925-2947.
Steven Downey Emerging Market Mindsets: Don’t Forget the Rest of the WorldBlogs. Retrieved from
Tadesse S. (2002). Financial Architecture and Economic Performance: International Evidence Journal of Financial Intermediation. (11(4)). 429-454.
Tsagkanos A., Siriopoulos C., Vartholomatou K. (2019). Foreign direct investment and stock market development: Evidence from a “new” emerging market Journal of Economic Studies. (46(1)). 55-70. doi: 10.1108/JES-06-2017-0154.
World Economic OutlookImf. Retrieved from
World Economics Situation and Prospects Retrieved from