Financial Integration into EU: The Romanian Case

The aim of this study is to investigate the determinants of integration between stock market of Romania and other stock markets of European Union (EU) countries. Correlations between the stock returns represent the level of integration between the stock markets. Empirical analysis are performed with...

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Main Authors: Ibrahim Bozkurt, Engin Akman
Format: Article
Language:English
Published: Editura ASE 2016-05-01
Series:Amfiteatru Economic
Subjects:
Online Access:http://www.amfiteatrueconomic.ro/ArticolEN.aspx?CodArticol=2510
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author Ibrahim Bozkurt
Engin Akman
author_facet Ibrahim Bozkurt
Engin Akman
author_sort Ibrahim Bozkurt
collection DOAJ
description The aim of this study is to investigate the determinants of integration between stock market of Romania and other stock markets of European Union (EU) countries. Correlations between the stock returns represent the level of integration between the stock markets. Empirical analysis are performed with daily stock returns of 24 EU members including Romania for 2002-2012 period using panel data gravity models and correlations are investigated. Findings reveal that the following factors have significant and robust effects on the financial integration process of Romania with other 23 EU members; (i) EU membership, (ii) bilateral trade, (iii) GDP per capita, (iv) 2012 sovereign debt crisis and (v) East European location. The results emphasize that intensifying economic relations with EU members can contribute the integration of Romanian stock market with other EU members. designed & hoste
format Article
id doaj-art-0211a92d66b34a2495fed532e1eb62c1
institution OA Journals
issn 1582-9146
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language English
publishDate 2016-05-01
publisher Editura ASE
record_format Article
series Amfiteatru Economic
spelling doaj-art-0211a92d66b34a2495fed532e1eb62c12025-08-20T01:59:26ZengEditura ASEAmfiteatru Economic1582-91462247-91042016-05-011842269285Financial Integration into EU: The Romanian CaseIbrahim Bozkurt 0Engin Akman1Cankiri Karatekin University, TurkeyCankiri Karatekin University, TurkeyThe aim of this study is to investigate the determinants of integration between stock market of Romania and other stock markets of European Union (EU) countries. Correlations between the stock returns represent the level of integration between the stock markets. Empirical analysis are performed with daily stock returns of 24 EU members including Romania for 2002-2012 period using panel data gravity models and correlations are investigated. Findings reveal that the following factors have significant and robust effects on the financial integration process of Romania with other 23 EU members; (i) EU membership, (ii) bilateral trade, (iii) GDP per capita, (iv) 2012 sovereign debt crisis and (v) East European location. The results emphasize that intensifying economic relations with EU members can contribute the integration of Romanian stock market with other EU members. designed & hostehttp://www.amfiteatrueconomic.ro/ArticolEN.aspx?CodArticol=2510financial integrationEuropean UnionRomaniagravity modelstock markets
spellingShingle Ibrahim Bozkurt
Engin Akman
Financial Integration into EU: The Romanian Case
Amfiteatru Economic
financial integration
European Union
Romania
gravity model
stock markets
title Financial Integration into EU: The Romanian Case
title_full Financial Integration into EU: The Romanian Case
title_fullStr Financial Integration into EU: The Romanian Case
title_full_unstemmed Financial Integration into EU: The Romanian Case
title_short Financial Integration into EU: The Romanian Case
title_sort financial integration into eu the romanian case
topic financial integration
European Union
Romania
gravity model
stock markets
url http://www.amfiteatrueconomic.ro/ArticolEN.aspx?CodArticol=2510
work_keys_str_mv AT ibrahimbozkurt financialintegrationintoeutheromaniancase
AT enginakman financialintegrationintoeutheromaniancase