Chapter 8

Investing on the Edge: Exploring the Opportunities for Diversification in Frontier Markets

A. Spiru
Z. Qin    Lancaster University Management School, Lancaster, United Kingdom

Abstract

The increase in the degree of integration of emerging stock markets with the mature markets together with rising correlations among asset classes have posed new challenges to investors in their quest for diversification opportunities. Frontier markets have risen up to the challenge, opening avenues for greater diversification benefits compared to their emerging counterparts. This study attempts to shed light on how the characteristics of frontier markets can enable investors to reap greater benefits from portfolio diversification. To this end, we examine ...

Get Handbook of Frontier Markets now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.