EMAJ: Emerging Markets Journal

The Influence of Foreign Investors on the Efficiency of the Saudi Stock Market

Abdullah Alesmaiel, Suzanne Fifield, Justin Hof — Mon, 02 Dec 2024 00:00:00 -0500

This article examines whether the level of weak-form efficiency of the Saudi stock market increased following liberalization in June 2015 when the market was opened up to foreign institutional investors. The results revealed that most sample companies and the market index did not follow a random walk over the sample period. However, the random walk hypothesis was not rejected after opening the market to foreign investors. This evidence implies that the steps taken by policy-makers to liberalize the Saudi stock market appear to have had a positive impact on the level of market efficiency.

Financial Innovation, Economic Growth and Sustainable Development in an Emerging Market: Nigeria

Olugbenga Adeshola Olunuga, Mustapha Babatunde Ademola Ashoghon — Mon, 02 Dec 2024 00:00:00 -0500

This paper presents recent studies on the effects of financial innovation on economic growth and sustainable development in Nigeria. The financial sectors worldwide are becoming increasingly important and competitive. Therefore, in order to compete successfully, it is necessary to possess flexibility and adaptability to change, as well as a willingness to embrace innovation. Financial markets are becoming more advanced and complex due to financial innovation, which helps direct capital towards productive sectors that are necessary for economic growth and development. The study employed time series data. Statistical data analysis techniques were employed to evaluate the secondary data on financial innovation. Research indicates that financial innovation has a significant impact on both economic growth and sustainable development in Nigeria. The study found that financial innovation variables have a positive effect. Therefore, financial institutions should prioritize easy and secure access to financial services when developing their financial innovation strategies. Regulatory bodies, on the other hand, should establish a regulatory environment that promotes innovative solutions capable of influencing economic growth and sustainable development.

The Hybrid Structure of Emerging Market Economies: A Political Economy Vision in the context of India, China and Russian Federation

Arkady Martynov — Mon, 02 Dec 2024 00:00:00 -0500

This article analyzes the present and future development of national economies belonging to emerging markets (EME). Manuscript presents an interpretation of the phenomenon of system transformational shift in EME with a hybrid institutional-agency structure. To develop the arguments, this phenomenon has been considered in relation to the three largest EME - India, China and Russian Federation. The discussion section is devoted to the issue of transition in relation to existing emerging national economies. Paper draws a conclusion about the reproduction of a hybrid structure of emerging market economies, which remains different from the structures of advanced western economies. Therefore, the still widespread treatment of institutions that play a key role in self-sufficient EME as obviously imperfect does not correspond to current realities. These liberal and non-liberal institutions present the vital elements of the established hybrid structure of the economies in post-developing and after socialist countries, characterized by the absence of a clear institutional hierarchy and the relative independence of various institutional orders and agency components.