This book outlines a rigorous, comprehensive, and practical framework for evaluating the opportunities and, more importantly, the risks of investing in emerging markets. Built on a foundation of sound research on foreign direct and portfolio capital flows, Andrew Karolyi's proposed system of evaluation incorporates multiple dimensions of the potential risks faced by prospective investors in an empirically coherent framework.

• PART I UNDERSTANDING THE RISKS IN EMERGING MARKETS


• Chapter 1 Accepting the Challenge


• Chapter 2 The Emerging Market Landscape


• Chapter 3 A Primer on Empirical Methodology


• PART II BUILDING THE EMERGING MARKETS RISK INDICATORS


• Chapter 4 Market Capacity Constraints


• Chapter 5 Operational Inefficiencies


• Chapter 6 Foreign Accessibility Restrictions


• Chapter 7 Corporate Opacity


• Chapter 8 Limits to Legal Protections


• Chapter 9 Political Instability


• PART III VALIDATING THE RISK INDICATORS


• Chapter 10 Do the Emerging Market Risk Indicators Work?


• Chapter 11 Making Sense of the Emerging Market Swoon of 2013


• PART IV THE EMERGING MARKETS ENIGMA CRACKED?


• Chapter 12 Final Remarks and a Few Cautions


• Data Appendixes

G. Andrew Karolyi is Alumni Professor of Asset Management, Professor of Finance, and Co-Director of the Emerging Markets Institute in the Johnson Graduate School of Management at Cornell University.