The WFE has published a report that seeks to identify factors that attract international portfolio investment into emerging market (EM) equities.

Emerging market exchanges and policy makers are concerned with how to enhance international participation in their markets, as international investors play an important role in the development of emerging economies’ public markets. International investors can provide additional capital; enhance liquidity; promote greater competitiveness and adherence to standards of corporate conduct; and help balance local retail and institutional participation. World Bank data estimates the level of net international portfolio equity inflows into emerging markets between 2000 and 2017 to be more than USD 955 billion.

The WFE's report looks at both foreign investment inflows to emerging equity markets, as well as foreign trading activity, to identify factors that are related to increases in both of these areas.