Contents -- I. Introduction -- II. Performance of Emerging Market Equity Markets -- III. Methodology of Panel Estimation -- IV. Results of the Panel Estimation -- V. Scenarios of impact -- VI. Contribution of domestic and external factors -- VII. Vector Autoregression Model and results -- VIII. Main Conclusions -- References -- Tables -- 1. Emerging Equity Market Peaks and Troughs: Current and Previous Episodes -- 2. Unit Root Tests -- 3. Pedroni Heterogeneous Panel Cointegration Tests -- 4. Fixed-Effects Panel Least-Squares Estimation, First Specification -- 5. Fixed-Effects Panel Least-Squares Estimation, Second Specification -- 6. Effects of External Shocks on the Growth Rates of Emerging Market Equity Prices -- 7. Contribution of Global and Domestic Factors to Equity Price Changes -- Figures -- 1. Selected Equity Market Indices -- 2. Emerging Market Economies: Composition of Capital Inflows -- 3. Current Account Balances and Capital Flows from a Global Perspective -- 4. Stock Market Capitalization -- 5. Total Equity Market Returns -- 6. Emerging Market Economies: Price/Earnings Ratios -- 7. Total Foreign Holdings of Equity -- 8. Emerging Markets Equity Indices and Foreign Investor Presence -- 9. Impulse Responses to the Global Shocks for the Seven Countries -- Annexes -- I. Methodological Issues -- II. Data and exlanatory variables.