What attracts international investors to emerging markets?
World Federation of Exchanges
December 2018
The only market structure feature found to be positively associated with international invest- ment is the introduction of securities lending and borrowing (SLB)
Turning to market structure characteristics, we find that the presence of SLB is associated with higher trading activity: a market introducing SLB sees a 73% increase the value of foreign trades. Along similar lines, introducing short-selling is associated with a 35% increase in the number of foreign trades.
The full report is available at https://www.world-exchanges.org/storage/app/media/research/report_covers/EM/WFE%20attracting%20international%20investors%20to%20EM%20Report%20FINAL%20VERSION%2003.12.18.pdf