IDEAS home Printed from https://ideas.repec.org/a/bla/jcmkts/v43y2005i1p1-11.html
   My bibliography  Save this article

The Euro and Financial Market Integration

Author

Listed:
  • HOSSEIN ASKARI
  • JOYDEEP CHATTERJEE

Abstract

One of the projected benefits of the euro was to be a unified capital market. The cost of capital would be lower and this, coupled with the larger market, would motivate large EU entities to satisfy their financing needs within the euro area. Our results support the expectation that the financial markets of the euro area countries would become more unified with a lowered cost of capital, especially for the less financially credible countries. It appears, however, that the benefit of a lower cost of capital has also accrued to the three EU countries that did not adopt the euro. Copyright Blackwell Publishing Ltd 2005.

Suggested Citation

  • Hossein Askari & Joydeep Chatterjee, 2005. "The Euro and Financial Market Integration," Journal of Common Market Studies, Wiley Blackwell, vol. 43(1), pages 1-11, March.
  • Handle: RePEc:bla:jcmkts:v:43:y:2005:i:1:p:1-11
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.0021-9886.2005.00543.x
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ivo Maes & Amy Verdun, 2005. "Small States and the Creation of EMU: Belgium and the Netherlands, Pace-setters and Gate-keepers," Journal of Common Market Studies, Wiley Blackwell, vol. 43(2), pages 327-348, June.
    2. Børge Romsloe, 2005. "Finland and the case of a Northern dimension for the EU: Inclusion by bargaining or arguing?," ARENA Working Papers 31, ARENA.
    3. Eliasson, Johan, 2004. "Traditions, Identity and Security: the Legacy of Neutrality in Finnish and Swedish Security Policies in Light of European Integration," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 8, June.
    4. Jonas Tallberg, 2004. "The Power of the Presidency: Brokerage, Efficiency and Distribution in EU Negotiations," Journal of Common Market Studies, Wiley Blackwell, vol. 42(5), pages 999-1022, December.
    5. David Arter, 2000. "Small State Influence Within the EU: The Case of Finland's 'Northern Dimension Initiative'," Journal of Common Market Studies, Wiley Blackwell, vol. 38(5), pages 677-697, December.
    6. Friis, Lykke, 1998. "'The End of the Beginning' of Eastern Enlargement Luxembourg Summit and Agenda-setting," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 2, October.
    7. Anders Wivel, 2005. "The Security Challenge of Small EU Member States: Interests, Identity and the Development of the EU as a Security Actor," Journal of Common Market Studies, Wiley Blackwell, vol. 43(2), pages 393-412, June.
    8. Hussein Kassim & Anand Menon, 2004. "European Integration Since the 1990s: Member States and the European Commission," ARENA Working Papers 6, ARENA.
    9. Anthony Forster, 1997. "Defence and European Integration," Journal of Theoretical Politics, , vol. 9(3), pages 297-315, July.
    10. Ian Manners, 2002. "Normative Power Europe: A Contradiction in Terms?," Journal of Common Market Studies, Wiley Blackwell, vol. 40(2), pages 235-258, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dewandaru, Ginanjar & Rizvi, Syed Aun R. & Masih, Rumi & Masih, Mansur & Alhabshi, Syed Othman, 2014. "Stock market co-movements: Islamic versus conventional equity indices with multi-timescales analysis," Economic Systems, Elsevier, vol. 38(4), pages 553-571.
    2. Axel Grossmann & Emiliano Giudici & Marc Simpson, 2014. "Euro conversion and return dynamics of European financial markets: a frequency domain approach," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 38(1), pages 1-26, January.
    3. Smimou, K. & Khallouli, W., 2015. "Does the Euro affect the dynamic relation between stock market liquidity and the business cycle?," Emerging Markets Review, Elsevier, vol. 25(C), pages 125-153.
    4. Dewandaru, Ginanjar & Alaoui, AbdelKader & Bacha, Obiyathulla & Masih, Mansur, 2014. "Stock Market Co-movement and Shock Transmission: Islamic versus Conventional Equity Indices," MPRA Paper 56888, University Library of Munich, Germany.
    5. Smimou, K., 2011. "Transition to the Euro and its impact on country portfolio diversification," Research in International Business and Finance, Elsevier, vol. 25(1), pages 88-103, January.
    6. Smimou, K. & Khallouli, W., 2016. "On the intensity of liquidity spillovers in the Eurozone," International Review of Financial Analysis, Elsevier, vol. 48(C), pages 388-405.
    7. José G. Dias & Sofia B. Ramos, 2015. "An Analysis of Industry Regimes Synchronization in the Eurozone," Journal of Common Market Studies, Wiley Blackwell, vol. 53(2), pages 255-273, March.
    8. Dewandaru, Ginanjar & Alaoui, Abdelkader & Masih, A. Mansur M. & Alhabshi, Syed Othman, 2013. "Comovement and resiliency of Islamic equity market: Evidence from GCC Islamic equity index based on wavelet analysis," MPRA Paper 56980, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jcmkts:v:43:y:2005:i:1:p:1-11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-9886 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.