Powerful trends of internationalization and migration of order flow are putting
pressures on stock exchanges around the world. For some exchanges, already more than
half of trading and listing has migrated offshore. Our analysis suggests that the process of
developing a local stock exchange also increases domestic firms' access to international
exchanges. In particular, we show that, while better fundamentals lead to an increase in
domestic activity, more and more of this activity will occur abroad as better fundamentals
spur the degree of migration in capital raising, listing, and trading to exchanges abroad.