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