engleski

Assessing financial integration of the SEE countries (Bulgaria and Croatia) with the EU

We analysed the financial integration of the SEE countries in comparison to the EU with focus on economic activities and stock exchanges in the observed countries to demonstrate the dependence of small financial markets on large ones and to investigate the spillover effect, i.e., the degree and pace of integration of ‘new’ financial markets into larger ones. There is evidence of an increase in stock exchange indices in the period of transition of the SEE countries, due to the opening of the market economy followed by large capital inflows. The main focus of this paper is based on Bulgaria and Croatia as SEE countries that are already in the EU wing. Those EU countries were found to be more dependent on the global financial markets and more exposed to adverse co-movements but with certain differences between the two of them.

EU integration, Financial integration, Stock exchange, Stock indices, SEE

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