Variable | Definitions | Calculation | Sources |
Corr | The stock return correlation | Annual correlation of daily returns between each emerging market with S & P 500 | Author’s calculation from data of Bloomberg |
Trade | The trade openness (%) | The ratio of total trade value to GDP | World Development Indicators dataset |
Fdi | The flow of direct investment (%) | The ratio of net foreign direct investment inflow/outflow to GDP | World Development Indicators dataset |
Fpi | The flow of portfolio investment (%) | The ratio of net foreign portfolio investment inflow/outflow to GDP | World Development Indicators dataset |
Bilateral trade | The bilateral trade between each emerging market with US, UK, Germany and France | The ratio to GDP or logarithm of bilateral trade | Trade Map |
Control of corruption, Government effectiveness, Rule of law, Regulatory quality, Politic stability, Voice and Accountability | WGI |