Title:The impact of Foreign Investment on Emerging Stock Markets Volatility:A Literature Review

The impact of foreign investment on domestic stock return volatility is a primary concern during the financial liberalization process.This article reviews the studies on the impact of foreign investment on the emerging stock markets volatility.The existing studies show differences in data,definition of SML,the way of obtaining volatilities and the methodology.The collusions of existing studies are mixed.Some works show that market opening decrease or increase volatility.Other studies find that there are no significant relation between financial liberalization and stock market volatility.