Financial Liberalization and Business Cycles:The Experience of Future EU Member States in the Baltics and Central Eastern Europe
This paper extends the work of Kaminsky and Schmukler (2003) to the Baltic and Central Eastern European future Member States of the European Union, to test if the same short-run increase in cyclical volatility arising from financial integration is observed in this specific sample of “emerging markets”. This work finds signs that, contrary to other emerging markets, this does not happen: for the future Member States, financial integration, similarly to the outcome observed in mature market economies, reduces cyclical volatility both in the short and in the long run. Weak indications are found that this may happen partially due to the anchoring of expectations provided by the EU Accession, and to the more robust institutional framework imposed by this process onto the countries in question.
(This abstract was borrowed from another version of this item.)
|Date of creation:||17 Sep 2004|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.essex.ac.uk/afm/mmf/index.html|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reinhart, Carmen & Tokatlidis, Ioannis, 2005.
"Before and After Financial Liberalization,"
6986, University Library of Munich, Germany.
- T. Naneva & Nikolay Nenovsky & M. Tomova, 2004.
"The efficiency of banking system in CEE: inequality and convergence to the EU,"
- T. Nenova & Nikolay Nenovsky & M. Tomova, 2003. "The Efficiency of banking Systems in CEE. Inequality and Convergence to the EU," Post-Print halshs-00259813, HAL.
- Levine, Ross, 2002.
"Bank-Based or Market-Based Financial Systems: Which Is Better?,"
Journal of Financial Intermediation,
Elsevier, vol. 11(4), pages 398-428, October.
- Ross Levine, 2002. "Bank-Based or Market-Based Financial Systems: Which is Better?," NBER Working Papers 9138, National Bureau of Economic Research, Inc.
- Ross Levine, 2002. "Bank-Based or Market-Based Financial Systems: Which is Better?," William Davidson Institute Working Papers Series 442, William Davidson Institute at the University of Michigan.
- Ian Domowitz & Jack Glen & Ananth Madhavan, 2000.
"Liquidity, Volatility, and Equity Trading Costs Across Countries and Over Time,"
William Davidson Institute Working Papers Series
322, William Davidson Institute at the University of Michigan.
- Domowitz, Ian & Glen, Jack & Madhavan, Ananth, 2001. "Liquidity, Volatility and Equity Trading Costs across Countries and over Time," International Finance, Wiley Blackwell, vol. 4(2), pages 221-55, Summer.
- Stanley Fischer & Ratna Sahay, 2000. "The Transition Economies After Ten Years," IMF Working Papers 00/30, International Monetary Fund.
- John Hawkins, 2002. "Bond markets and banks in emerging economies," BIS Papers chapters, in: Bank for International Settlements (ed.), The development of bond markets in emerging economies, volume 11, pages 42-48 Bank for International Settlements.
- Thomas Reininger & Franz Schardax & Martin Summer, 2002.
"Financial System Transition in Central Europe: The First Decades,"
SUERF - The European Money and Finance Forum, number 16 edited by Morten Balling, November.
- by Thomas Reininger & Franz Schardax & Martin Summer, 2002. "Financial System Transition in Central Europe: The First Decade," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
- Assaf Razin & Andrew Rose, 1992. "Business Cycle Volatility and Openness: An Exploratory Cross-Section Analysis," NBER Working Papers 4208, National Bureau of Economic Research, Inc.
- Ayhan Kose & Marco Terrones & Eswar Prasad, 2003. "Volatility and Comovement in a Globalized World Economy; An Empirical Exploration," IMF Working Papers 03/246, International Monetary Fund.
- Fleming, Alex & Lily Chu & Bakker, Marie-Renee, 1996. "The Baltics - Banking crises observed," Policy Research Working Paper Series 1647, The World Bank.
- International Monetary Fund, 2003. "Managing Risks in Financial Market Development; The Role of Sequencing," IMF Working Papers 03/116, International Monetary Fund.
- Stanley Fischer & Ratna Sahay, 2000. "The Transition Economies After Ten Years," NBER Working Papers 7664, National Bureau of Economic Research, Inc.
- Marina Bakanova & LÃºcio Vinhas de Souza & Irina Kolesnikova, 2004. "Transition and growth in Belarus," Chapters, in: The Economic Prospects of the CIS, chapter 3 Edward Elgar Publishing.
- Utpal Bhattacharya & Hazem Daouk, 2002. "The World Price of Insider Trading," Journal of Finance, American Finance Association, vol. 57(1), pages 75-108, 02.
- Garry J. Schinasi, 2003. "Responsibility of Central Banks for Stability in Financial Markets," IMF Working Papers 03/121, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:mmf:mmfc04:5. 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: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.