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Are Determinants Of International Financial Integration In The European Transition Countries Different From Post-Transition Countries?

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  • GANIĆ Mehmed

    (International University of Sarajevo, Bosnia and Herzegovina)

Abstract

The paper seeks to empirically explore the variations and changes in the degree of International Financial Integration (IFI) between the European Transition countries and Post-Transition countries between 2000 and 2016. The estimation of parameters was made using the Generalized Method of Moment (GMM) approach. The findings of the study reveal that European Post-Transition countries have relatively more developed financial systems compared to European Transition countries, where private credit market is still playing an overwhelmingly important role in a financial system while stock markets are in an early stage of development constituting a relatively small share of the financial system. Even though in Panel 3 there are significant control variables, our findings reveal that IFI in European transition countries are affected neither by stock market capitalization and private credit markets. Consequently, they can't be used in this stage of financial development for explanation of variations and changes in the degree of IFI.

Suggested Citation

  • GANIĆ Mehmed, 2020. "Are Determinants Of International Financial Integration In The European Transition Countries Different From Post-Transition Countries?," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 15(1), pages 40-54, April.
    • Handle: RePEc:blg:journl:v:15:y:2020:i:1:p:40-54
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    File URL: http://eccsf.ulbsibiu.ro/RePEc/blg/journl/15105ganic.pdf
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    References listed on IDEAS

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    Cited by:

    1. Josip Tica & Viktor Viljevac & Matija Matiæ, 2023. "Employment rate and economic growth:The case of transition countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 41(1), pages 9-39.

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