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I am doing a cross-country research where different countries implement anti-corruption at the different year. I want to examine the impact of the laws in each set of countries (developed and developing). The first country implement the law in 1993 and the last country implement the law in 2016.

I am wondering what index or source i need to use to classify the emerging and developed markets in this case. Many thanks and warm regards.

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2 Answers 2

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There is no official canonical classification of countries into developed / emerging / frontier markets.

However the MSCI one, found here https://www.msci.com/our-solutions/indexes/market-classification , https://www.msci.com/documents/1296102/1360895/8.5x11inch_MSCI_Country_Classification_Standard_FactSheet.pdf/5b95f2f4-4ced-43a2-92ad-218771a2218c , is pretty authoritative.

(For example, I remember when Australia and Greece were considered EM (rightfully so); they're only called DM because some people took offense at being called EM.)

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  • $\begingroup$ Thanks @Dimitri Vulis. I am wondering in my case, I should choose the index in 2021 or the start of my sample period (1993). Thanks $\endgroup$
    – Nguyen Lis
    Commented Oct 4, 2021 at 20:22
  • $\begingroup$ you should not use 'future knowledge', but try to use the classification that was in effect at each point in time, if you can find or deduce it. $\endgroup$ Commented Oct 4, 2021 at 20:25
  • $\begingroup$ thanks again. The latter file that you just updated should cover at the year 2017 right? It is pretty hard to find or deduce the emerging or developed at each year. However, I am thinking of using a benchmark (saying 1990) for all, do you think it makes sense? $\endgroup$
    – Nguyen Lis
    Commented Oct 4, 2021 at 20:34
  • $\begingroup$ it maby be "close enough" to use static. I'd try to use historical classifications the best I can. for exmaple, Portugal or Israel were certianly EM in 1990 and are certainly DM now. $\endgroup$ Commented Oct 4, 2021 at 21:37
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    $\begingroup$ Korea is another that may, in my opinion, have changed sides. It is still considered EM by MSCI, but DM by FTSE Russell. $\endgroup$
    – nbbo2
    Commented Oct 5, 2021 at 13:01
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How about the MSCI Emerging Markets index?

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  • $\begingroup$ Thanks @Si Chen. I am wondering in my case, I should choose the index in 2021 or the start of my sample period (1993). Thanks $\endgroup$
    – Nguyen Lis
    Commented Oct 4, 2021 at 20:22

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