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Does Development Level of Stock Market Affect the Degree of Global and Regional Integration? Evidence from the Central and Eastern European Countries Stock Markets

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Country Experiences in Economic Development, Management and Entrepreneurship

Part of the book series: Eurasian Studies in Business and Economics ((EBES,volume 5))

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Abstract

Despite many similarities among the Central and Eastern European countries (CEECs’) stock markets, there are some important differences in terms of markets size, development level, etc. Stock market characteristics could give an explanation for the existing differences among the global and regional integration of the CEECs’ stock markets. The objective of this study—to assess the impact of stock market development on the degree of global and regional integration of CEECs’ stock markets. The research methods: the systemic, logical and comparative analysis of the scientific literature and panel regression. The empirical results of this study suggest that the stock markets in Poland, Czech Republic, Hungary, and Croatia are most developed CEECs stock markets. The EU enlargement process, the introduction of the euro and the removal of exchange rate risk in most of the CEECs had only short lasting effect on the CEECs stock markets’. The development level of stock market (stock market size and stock market turnover) has a statistically significant positive effect on the degree of global and regional financial integration.

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Acknowledgement

This research was funded by a grant (No. MIP-016/2015) from the Research Council of Lithuania.

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Authors and Affiliations

  1. Department of Finance, School of Economics and Business, Kaunas University of Technology, Kaunas, Lithuania

    Vilma Deltuvaitė

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  1. Vilma Deltuvaitė
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Correspondence to Vilma Deltuvaitė .

Editor information

Editors and Affiliations

  1. Faculty of Political Sciences, Istanbul Medeniyet University Faculty of Political Sciences, Istanbul, Turkey

    Mehmet Huseyin Bilgin

  2. MUFG Union Bank , San Francisco, California, USA

    Hakan Danis

  3. Faculty of Tourism, Istanbul Medeniyet University Faculty of Tourism, Istanbul, Turkey

    Ender Demir

  4. Eurasia Business and Economic Society , Fatih, Istanbul, Turkey

    Ugur Can

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Deltuvaitė, V. (2017). Does Development Level of Stock Market Affect the Degree of Global and Regional Integration? Evidence from the Central and Eastern European Countries Stock Markets. In: Bilgin, M., Danis, H., Demir, E., Can, U. (eds) Country Experiences in Economic Development, Management and Entrepreneurship. Eurasian Studies in Business and Economics, vol 5. Springer, Cham. https://doi.org/10.1007/978-3-319-46319-3_43

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