The Integration of Romanian Stock Market in European Union: An Empirical Analysis
This paper uses a dynamic conditional correlation model to depict the degree of integration of Romanian stock market with other 22 stock markets from the European Union. Analyzing the results, we noticed that the dynamics of Romanian stock market integration varies, both in the analyzed periods and...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Nicolae Titulescu University
2020-12-01
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| Series: | Global Economic Observer |
| Subjects: | |
| Online Access: | http://www.globeco.ro/wp-content/uploads/vol/split/vol_8_no_2/geo_2020_vol8_no2_art_008.pdf |
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| Summary: | This paper uses a dynamic conditional correlation model to depict the degree of integration of Romanian stock market with other 22 stock markets from the European Union. Analyzing the results, we noticed that the dynamics of Romanian stock market integration varies, both in the analyzed periods and in relation with other markets. Also, the degree of Romanian stock market integration with other EU markets is quite low. In the case of most markets, the trend of Romania's integration follows a similar pattern. More exactly, the integration starts from low values in 2004-2007, reaches higher values during the global financial crisis and the sovereign debt crisis and, after 2012, descends and stabilizes around equilibrium values. The results obtained in this study are useful for investors and for the supervisory authorities, in order to adopt measures necessary to increase the degree of integration of the financial market in Romania. |
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| ISSN: | 2343-9742 2343-9750 |