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Financial Integration into EU: The Romanian Case

Author

Listed:
  • Ibrahim Bozkurt

    (Cankiri Karatekin University, Turkey)

  • Engin Akman

    (Cankiri Karatekin University, Turkey)

Abstract

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.

Suggested Citation

  • Ibrahim Bozkurt & Engin Akman, 2016. "Financial Integration into EU: The Romanian Case," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(42), pages 269-269, May.
    • Handle: RePEc:aes:amfeco:v:42:y:2016:i:18:p:269
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    More about this item

    Keywords

    financial integration; European Union; Romania; gravity model; stock markets;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F30 - International Economics - - International Finance - - - General
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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