| Emerging market mutual funds were established in the early 1980s on both debt and equity markets; and the US emerging market mutual funds accounts for more than half of the total worldwide. The growth of this fund seems to coincide with the remarkable growth of the equity markets in the developing countries in the 1980s. This study examines the relationship of the performance of the index of US emerging market mutual funds and the economic growth of the fund-recipient countries, as well as other macroeconomic variables that support and relate to the economic growth, by using the Vector Error Correction Model (VEC Model) to find the Granger causal relations for each economy. |
