Romanian Stock Market Integration with Europe: A Covid-19 Perspective
Understanding the interconnectedness of financial markets is essential for assessing market efficiency, risk transmission, and financial integration, particularly in the context of global shocks. While the COVID-19 pandemic has prompted numerous empirical investigations into international stock mark...
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| Format: | Article |
| Language: | English |
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Romanian Foundation for Business Intelligence
2025-09-01
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| Series: | SEA: Practical Application of Science |
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| Online Access: | https://seaopenresearch.eu/Journals/articles/SPAS_38_5.pdf |
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| author | Botond BENEDEK |
| author_facet | Botond BENEDEK |
| author_sort | Botond BENEDEK |
| collection | DOAJ |
| description | Understanding the interconnectedness of financial markets is essential for assessing market efficiency, risk transmission, and financial integration, particularly in the context of global shocks. While the COVID-19 pandemic has prompted numerous empirical investigations into international stock market co-movements, important gaps remain regarding the integration between developed and emerging European markets. This study explores the degree of integration between the Romanian stock market and major developed Western European markets, with a particular emphasis on Germany, Romania’s largest trading partner. Employing partial wavelet coherence analysis, we analyze the co-movement between the German DAX and Romanian BET indices across three distinct periods: before, during, and after the COVID-19 pandemic. The findings reveal that the pandemic temporarily weakened market integration, but this effect was reversed in the post-pandemic period, with integration not only recovering but intensifying. These results carry important implications for investors, policymakers, and scholars concerned with financial contagion, regional integration, and the resilience of emerging markets in the European context. |
| format | Article |
| id | doaj-art-4e491a3771a84d5f80d7e3f5d2d1cfb4 |
| institution | OA Journals |
| issn | 2360-2554 |
| language | English |
| publishDate | 2025-09-01 |
| publisher | Romanian Foundation for Business Intelligence |
| record_format | Article |
| series | SEA: Practical Application of Science |
| spelling | doaj-art-4e491a3771a84d5f80d7e3f5d2d1cfb42025-08-20T02:31:37ZengRomanian Foundation for Business IntelligenceSEA: Practical Application of Science2360-25542025-09-01XIII3811312110.70147/s38113121Romanian Stock Market Integration with Europe: A Covid-19 PerspectiveBotond BENEDEK0Babeș-Bolyai University, Faculty of Economics and Business Administration, Cluj-Napoca, RomaniaUnderstanding the interconnectedness of financial markets is essential for assessing market efficiency, risk transmission, and financial integration, particularly in the context of global shocks. While the COVID-19 pandemic has prompted numerous empirical investigations into international stock market co-movements, important gaps remain regarding the integration between developed and emerging European markets. This study explores the degree of integration between the Romanian stock market and major developed Western European markets, with a particular emphasis on Germany, Romania’s largest trading partner. Employing partial wavelet coherence analysis, we analyze the co-movement between the German DAX and Romanian BET indices across three distinct periods: before, during, and after the COVID-19 pandemic. The findings reveal that the pandemic temporarily weakened market integration, but this effect was reversed in the post-pandemic period, with integration not only recovering but intensifying. These results carry important implications for investors, policymakers, and scholars concerned with financial contagion, regional integration, and the resilience of emerging markets in the European context.https://seaopenresearch.eu/Journals/articles/SPAS_38_5.pdffinancial market integrationco-movementcovid-19 pandemicpartial wavelet coherence |
| spellingShingle | Botond BENEDEK Romanian Stock Market Integration with Europe: A Covid-19 Perspective SEA: Practical Application of Science financial market integration co-movement covid-19 pandemic partial wavelet coherence |
| title | Romanian Stock Market Integration with Europe: A Covid-19 Perspective |
| title_full | Romanian Stock Market Integration with Europe: A Covid-19 Perspective |
| title_fullStr | Romanian Stock Market Integration with Europe: A Covid-19 Perspective |
| title_full_unstemmed | Romanian Stock Market Integration with Europe: A Covid-19 Perspective |
| title_short | Romanian Stock Market Integration with Europe: A Covid-19 Perspective |
| title_sort | romanian stock market integration with europe a covid 19 perspective |
| topic | financial market integration co-movement covid-19 pandemic partial wavelet coherence |
| url | https://seaopenresearch.eu/Journals/articles/SPAS_38_5.pdf |
| work_keys_str_mv | AT botondbenedek romanianstockmarketintegrationwitheuropeacovid19perspective |