ABSTRACT
This chapter presents a comprehensive analysis of the development of the regional stock exchanges over time; to put forward policy recommendations for the further development of the exchanges; and to offer lessons to other small emerging economies in the process of developing their own equity markets. It shows that the financial development goes hand in hand with all-round economic development. The chapter reviews some background material and stylized facts related to equity markets in emerging economies, in particular to the three CARICOM equity markets. It focuses on data and methodology, empirical analysis, policy recommendations and lessons for other small emerging economies. Clearly, work needs to be done in attracting firms onto the stock exchanges which becomes clearer when comparisons are made with the benchmarks. One key area of concern even today is the illiquid states of many of the regional exchanges, which has resulted in thin trading environments.
