Lots of research has explored the development and efficiency of equity markets in emerging and developing economies. Few studies, however, have focused on the nascent markets – the recently established stock exchanges
across the developing world. At a time, when a third of countries across the globe does not have a stock exchange yet, but many countries still consider establishing ones, there are obvious questions for policy makers: what are the success factors for
a successful market, what institutions and policies are needed. In a recent working paper with José Albuquerque de Sousa, Peter van Bergeijk, and Mathijs van Dijk we explore these questions.