Convention suggests that emerging market investments should provide commensurately lower risk or
higher returns than assets in developed countries. An analysis of state participation in oilfield asset revenue
is used to provide evidence that, under rising oil prices, globally divergent forms of state oilfield
participation terms have the potential to invert this convention. The expectation of an emerging market
premium has been expanded by many studies that have begun to grapple with the distinction between
emerging and developed equity market characteristics.Conover et al. (2002)provide ex ante tests for
difference in equity risk premia, comparing developed and emerging market monetary cyclicality.Bekaert
and Harvey (2002)encapsulate the multidisciplinary and multifaceted problems facing comparative asset
valuation in emerging markets, summarizing the global asset valuation challenge as one that needs to link