Do foreign stocks substitute for international diversification?
研究了42个国家1979-2018年外国股票的可获得性如何帮助国内投资者实现国际分散化，发现外国股票能有效替代国际分散化并促进全球市场一体化。
Abstract Using a novel sample of foreign securities available for trade in 42 countries during the last four decades (1979–2018), we examine the rise in importance of foreign stocks for investors in their host countries and its implications for diversification across industries and countries. The availability of foreign stocks allows domestic investors to increase their international diversification from home by investing in these stocks. We conclude that including foreign stocks in portfolio investments offers an effective substitute for international diversification, and contributes significantly towards increasing the integration of global markets.