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Emerging economies typically grow faster than advanced industrialised economies due to their relative degree of underdevelopment. Foreign Direct Investments (FDI) facilitates growth convergence through capital deepening, as foreign capital flows into emerging economies, either as portfolio capital or longer-term direct equity/debt. Since these economies are less integrated into global markets, they typically offer a higher risk premium to foreign investors, including term premium, credit premium, equity risk premium, and liquidity premium. The MSCI Frontier Markets Index captures large and mid-cap representation across 28 "frontier markets" countries, which include: Bangladesh, Burkina Faso, Croatia, Estonia, Guinea-Bissau, Ivory Coast, Kenya, Nigeria, Oman, Pakistan,...
