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The effects of IMF conditionality on Romanian economy: evidence from the Bucharest Stock Exchange

Author

Listed:
  • Andreea Săseanu

    (Bucharest University of Economic Studies, Romania)

  • Hosney (Harry) Zurub

    (Bucharest University of Economic Studies, Romania)

  • Gurgen Ohanyan

    (Bucharest University of Economic Studies, Romania)

  • Natalia Bob

    (Bucharest University of Economic Studies, Romania)

Abstract

The financial crisis has hurt almost all the countries in the world, strengthening the role of the international financial institutions such as the International Monetary Fund (IMF). Given that Romania turned to the IMF to cushion the impact of the crisis, our paper investigates the influence of the IMF programs on the macroeconomic indicators of the Romanian economy in the recent years and the effects on the investment environment represented by the volume of transactions on Bucharest Stock Exchange (BSE). The method used to achieve our goal is the analysis of the time series consisting of the monthly moving average of the volume of transactions on BSE, the consumer price index (CPI), the credit interest rate (Lombard) and the Euro/Ron rate of exchange fluctuation in the last 10 years. The contribution of the paper comes from its findings which draw an interesting and useful conclusion on the effects of the interventions of the IMF in Romania that can work as a guideline for further interventions.

Suggested Citation

  • Andreea Săseanu & Hosney (Harry) Zurub & Gurgen Ohanyan & Natalia Bob, 2014. "The effects of IMF conditionality on Romanian economy: evidence from the Bucharest Stock Exchange," Management & Marketing, Economic Publishing House, vol. 9(3), Autumn.
    • Handle: RePEc:eph:journl:v:9:y:2014:i:3:n:4
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    References listed on IDEAS

    as
    1. International Monetary Fund, 2012. "Romania: Ex Post Evaluation of Exceptional Access Under the 2009 Stand-By Arrangement," IMF Staff Country Reports 2012/064, International Monetary Fund.
    2. Gurgen OHANYAN, 2013. "The Sway of IMF Policies on the Romanian Economy amid Global Financial Crisis," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2013(21), pages 27-42, December.
    3. James Vreeland, 2006. "IMF program compliance: Aggregate index versus policy specific research strategies," The Review of International Organizations, Springer, vol. 1(4), pages 359-378, December.
    4. Barry Harrison & David Paton, 2005. "Transition, the Evolution of Stock Market Efficiency and Entry into EU: The Case of Romania," Economic Change and Restructuring, Springer, vol. 37(3), pages 203-223, September.
    5. Dan Anghel, 2013. "How Reliable is the Moving Average Crossover Rule for an Investor on the Romanian Stock Market?," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 5(2), pages 089-115, December.
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