Claude B. Erb
First Chicago NBD Investment Management Co., Chicago, IL
Campbell R. Harvey
Duke University, Durham, NC 27708
National Bureau of Economic Research, Cambridge, MA
Tadas E. Viskanta
First Chicago NBD Investment Management Co., Chicago, IL
ABSTRACT
Do the traditional arguments for emerging markets investment hold today? That is, do merging countries provide higher expected returns? Is a portfolio of emerging markets still a good portfolio diversifier? The authors say yes, with some cavaets. In an article which revisits what constitutes and merging market, the dynamaism and the diversity of emerging markets, beyond the World Bank's traditional definition of per capita GDP, and the overlaps of emerging markets with developed markets may become clearer..