Acknowledgments v

About the Authors vii

Executive Summary 1

Introduction 3

　Contributions r 4

　Main findings 7

Characteristics of frontier markets 9

　Share of global population 10

　Global economic footprint 10

Financial integration and financial development 11

　Composition and volatility of capital inflows 11

　Limited financial market development 16

　Integration with the global financial cycle 17

Fiscal positions, debt, and institutional quality 23

　Fiscal positions and debt 23

　Institutional quality 24

Macroeconomic and development outcomes 25

　Headline macroeconomic performance 25

　Convergence and poverty reduction 26

　Physical capital accumulation and human development 27

　Sectoral composition of output and employment 27

Features of frontier market success 28

　Features of faster-growing frontier markets 28

　Lessons from case studies of faster-growing frontier markets 29

Policy priorities for frontier markets 31

　Advancing financial and trade integration while managing external vulnerabilities 31

　Bolstering macroeconomic stability 34

　Catalyzing productivity growth through structural reforms 36

　Support for frontier markets from the international community 39

References 57