Econometric Analysis of Integration of Selected New EU Member CEE Stock Markets With Global Stock Market and Eurozone: Impact of Global Financial Crisis

The period of the global financial crisis can be characterized by the spillover of negative innovations among stock markets worldwide. Stock markets in Central Europe were not excluded as they are not isolated from global stock markets. Recently published scientific studies dealing with this them...

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Main Authors: Jan Sucháček, Jaroslav Koutský, Lorena Caridad Lopéz del Río, Petr Seďa
Format: Article
Language:English
Published: Editura ASE 2021-08-01
Series:Amfiteatru Economic
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Online Access:https://www.amfiteatrueconomic.ro/temp/Article_3042.pdf
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author Jan Sucháček
Jaroslav Koutský
Lorena Caridad Lopéz del Río
Petr Seďa
author_facet Jan Sucháček
Jaroslav Koutský
Lorena Caridad Lopéz del Río
Petr Seďa
author_sort Jan Sucháček
collection DOAJ
description The period of the global financial crisis can be characterized by the spillover of negative innovations among stock markets worldwide. Stock markets in Central Europe were not excluded as they are not isolated from global stock markets. Recently published scientific studies dealing with this theme were mainly focused on the integration of the new EU members´ stock markets with the eurozone only. Hence, this paper aims to investigate, compare and interpret integration among stock markets of selected new EU member states in Central Europe (the Czech Republic, Hungary, and Poland), the global stock market and the eurozone equity market within 2004-2018. The added value of this article consists especially in using a wider spectrum of econometric tools (cointegration, VAR model, Granger causality, variance decomposition) and comparison of changes of mutual relationships in three different testing sub-periods to study the dynamics in time. Our research is accomplished via usage of data on daily frequency. Delivered results showed that the degree of integration of Central European stock markets with the US stock market and eurozone significantly increased during global financial crisis. Moreover, stock markets in Central Europe are more integrated with the global stock market than the euro area.
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spelling doaj-art-2c10eaac703a4edaabfe018ea2f08cbf2025-08-20T02:24:07ZengEditura ASEAmfiteatru Economic1582-91462247-91042021-08-01235882484210.24818/EA/2021/58/824Econometric Analysis of Integration of Selected New EU Member CEE Stock Markets With Global Stock Market and Eurozone: Impact of Global Financial CrisisJan Sucháček0https://orcid.org/0000-0001-9508-6959Jaroslav Koutský1https://orcid.org/0000-0002-2581-8058Lorena Caridad Lopéz del Río 2https://orcid.org/0000-0002-3406-9917Petr Seďa3https://orcid.org/0000-0002-2205-6377Masaryk University, Brno, Czech RepublicJan Evangelista Purkyně University in Ústí nad Labem, Ústí nad Labem, Czech RepublicUniversity of Córdoba, Córdoba, SpainVŠB – Technical University of Ostrava, Ostrava, Czech RepublicThe period of the global financial crisis can be characterized by the spillover of negative innovations among stock markets worldwide. Stock markets in Central Europe were not excluded as they are not isolated from global stock markets. Recently published scientific studies dealing with this theme were mainly focused on the integration of the new EU members´ stock markets with the eurozone only. Hence, this paper aims to investigate, compare and interpret integration among stock markets of selected new EU member states in Central Europe (the Czech Republic, Hungary, and Poland), the global stock market and the eurozone equity market within 2004-2018. The added value of this article consists especially in using a wider spectrum of econometric tools (cointegration, VAR model, Granger causality, variance decomposition) and comparison of changes of mutual relationships in three different testing sub-periods to study the dynamics in time. Our research is accomplished via usage of data on daily frequency. Delivered results showed that the degree of integration of Central European stock markets with the US stock market and eurozone significantly increased during global financial crisis. Moreover, stock markets in Central Europe are more integrated with the global stock market than the euro area.https://www.amfiteatrueconomic.ro/temp/Article_3042.pdfglobal financial crisisgranger causalityintegrationstock marketvar modelvariance decomposition
spellingShingle Jan Sucháček
Jaroslav Koutský
Lorena Caridad Lopéz del Río
Petr Seďa
Econometric Analysis of Integration of Selected New EU Member CEE Stock Markets With Global Stock Market and Eurozone: Impact of Global Financial Crisis
Amfiteatru Economic
global financial crisis
granger causality
integration
stock market
var model
variance decomposition
title Econometric Analysis of Integration of Selected New EU Member CEE Stock Markets With Global Stock Market and Eurozone: Impact of Global Financial Crisis
title_full Econometric Analysis of Integration of Selected New EU Member CEE Stock Markets With Global Stock Market and Eurozone: Impact of Global Financial Crisis
title_fullStr Econometric Analysis of Integration of Selected New EU Member CEE Stock Markets With Global Stock Market and Eurozone: Impact of Global Financial Crisis
title_full_unstemmed Econometric Analysis of Integration of Selected New EU Member CEE Stock Markets With Global Stock Market and Eurozone: Impact of Global Financial Crisis
title_short Econometric Analysis of Integration of Selected New EU Member CEE Stock Markets With Global Stock Market and Eurozone: Impact of Global Financial Crisis
title_sort econometric analysis of integration of selected new eu member cee stock markets with global stock market and eurozone impact of global financial crisis
topic global financial crisis
granger causality
integration
stock market
var model
variance decomposition
url https://www.amfiteatrueconomic.ro/temp/Article_3042.pdf
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AT jaroslavkoutsky econometricanalysisofintegrationofselectedneweumemberceestockmarketswithglobalstockmarketandeurozoneimpactofglobalfinancialcrisis
AT lorenacaridadlopezdelrio econometricanalysisofintegrationofselectedneweumemberceestockmarketswithglobalstockmarketandeurozoneimpactofglobalfinancialcrisis
AT petrseda econometricanalysisofintegrationofselectedneweumemberceestockmarketswithglobalstockmarketandeurozoneimpactofglobalfinancialcrisis