Financial Innovation in Emerging Markets - Possible Benefits and Risks

9 Pages Posted: 4 Sep 2008

See all articles by P. K. Mishra

P. K. Mishra

Central University of Punjab

Date Written: September 3, 2008

Abstract

This study examines the factors, both micro- and macro-economic, responsible for financial innovations in Emerging Markets. The possible benefits and threats of financial innovations in Emerging Market Economies are also analysed. Financial innovations lower cost of capital, reduce financial risks, improve financial intermediation, and hence welfare enhancing. However, financial innovations are not risk-free; they can create or exacerbate risk.

Keywords: Financial Innovation, Emerging Markets, Risks

JEL Classification: E44, G00, G19

Suggested Citation

Mishra, P. K., Financial Innovation in Emerging Markets - Possible Benefits and Risks (September 3, 2008). Available at SSRN: https://ssrn.com/abstract=1262650 or http://dx.doi.org/10.2139/ssrn.1262650

P. K. Mishra (Contact Author)

Central University of Punjab ( email )

City Campus
Mansa Road
Bathinda, PA Punjab 151001
India
09438304849 (Phone)

HOME PAGE: http://www.cup.ac.in

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