IDEAS home Printed from https://ideas.repec.org/a/cbu/jrnlec/y2015v4p155-163.html
   My bibliography  Save this article

The Road Of Romania From Frontier Towards Emerging Capital Market Status

Author

Listed:
  • BELCIC-STEFAN IULIA-OANA

    (UNIVERSITY OF CRAIOVA, ROMANIA)

Abstract

In the present study I first present the classification system of states by international financial institutions on economic and financial criteria, then focusing on the classification made by Morgan Stanley Capital International. According to it the capital market in Romania is currently a frontier one, the Financial Surveillance Authority pursuing the reclassification as an emerging capital market by August 2016. The findings of the study indicate this term as unrealistic, for several reasons. Thus, curently on the Romanian stock market there are only two entities out of 3 minimum required, respectively S.N.G.N Romgaz and Fondul Proprietatea, which fully meet the size and liquidity requirements imposed by MSCI in order to be reclassified as an emerging capital market. Also it is mandatory making significant progress regarding the effectiveness of the operational framework, progress made to some extent through Project S.T.E.A.M. (Set of actions Towards Establishing and Acknowledgment of the emerging Market status). On this project, after analyzing the degree of completion of the proposed measures in order to reach the primary and secondary objectives, whose deadlines have expired, according to the schedule provided, we found that only 69% of them were fulfilled. Given these considerations I can state that Romania could be reclassified as an emerging capital market at the earliest starting with 2017.

Suggested Citation

  • Belcic-Stefan Iulia-Oana, 2015. "The Road Of Romania From Frontier Towards Emerging Capital Market Status," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 155-163, August.
    • Handle: RePEc:cbu:jrnlec:y:2015:v:4:p:155-163
    as

    Download full text from publisher

    File URL: http://www.utgjiu.ro/revista/ec/pdf/2015-04/22_Belcic.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:idb:brikps:59498 is not listed on IDEAS
    2. Augusto de la Torre & Sergio L. Schmukler, 2007. "Emerging Capital Markets and Globalization : The Latin American Experience," World Bank Publications - Books, The World Bank Group, number 7187.
    3. Ms. Li L Ong & Silvia Iorgova, 2008. "The Capital Markets of Emerging Europe: Institutions, Instruments and Investors," IMF Working Papers 2008/103, International Monetary Fund.
    4. Augusto de la Torre & Sergio L. Schmukler, 2007. "Emerging Capital Markets and Globalization : The Latin American Experience," World Bank Publications, The World Bank, number 7187, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Endo, Tadashi, 2022. "Endogenous market development for government securities in lower-income economies," Emerging Markets Review, Elsevier, vol. 50(C).
    2. Alma Hales, 2015. "Liquidity and price discovery in Latin America: evidence from American depositary receipts," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(4), pages 661-678, October.
    3. de la Torre, Augusto & Didier, Tatiana & Pinat, Magali, 2014. "Can Latin America tap the globalization upside ?," Policy Research Working Paper Series 6837, The World Bank.
    4. Bank for International Settlements, 2019. "Establishing viable capital markets," CGFS Papers, Bank for International Settlements, number 62.
    5. Ahmed, Abdullahi D. & Mmolainyane, Kelesego K., 2014. "Financial integration, capital market development and economic performance: Empirical evidence from Botswana," Economic Modelling, Elsevier, vol. 42(C), pages 1-14.
    6. Haileberhan Zena, 2021. "Analysis of the Need for Stock Market in Ethiopia," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(2), pages 1-84, February.
    7. Peter Ego Ayunku, 2018. "The Nexus between Financial Sector Development and Economic Growth in Nigeria: A Cointergration Approach," Noble International Journal of Social Sciences Research, Noble Academic Publsiher, vol. 3(8), pages 55-70, August.
    8. Chiriboga-Tejada, Andrés, 2018. "A tale of two cities: the regional dimension of the Ecuadorian securities market," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 19(3), pages 25-35.
    9. Gary A. Dymski, 2010. "Three Futures for Postcrisis Banking in the Americas: The Financial Trilemma and the Wall Street Complex," Economics Working Paper Archive wp_604, Levy Economics Institute.
    10. Hales, Alma D. & Mollick, André V., 2014. "The impact of ADR activity on stock market liquidity: Evidence from Latin America," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(3), pages 417-427.
    11. Bofelo Warona Mokgadi & Simangaliso Biza-Khupe, 2018. "An Empirical Investigation of the Relationship Between Pension Fund Reforms and Financial Sector Development in Botswana," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 7(2), pages 1-3.
    12. Okoroafor O.K David & Yelwa Mohammed, 2016. "The Perceived Relations between Development Reforms, Stock Market Performance and Economic Growth in Nigeria: 1984-2014," Economy, Asian Online Journal Publishing Group, vol. 3(1), pages 31-39.
    13. Endo, Tadashi, 2008. "Broadening the offering choice of corporate bonds in emerging markets : cost-effective access to debt capital," Policy Research Working Paper Series 4655, The World Bank.
    14. Claessens, Stijn & Schmukler, Sergio L., 2007. "International financial integration through equity markets: Which firms from which countries go global?," Journal of International Money and Finance, Elsevier, vol. 26(5), pages 788-813, September.
    15. Oana Georgiana AMARANDEI, 2015. "INSTITUTIONAL CHANGES IN EMERGING EUROPE Abstract : The recent global economic crisis has created new conditions and situations for the economic environment and therefore, in this context the rethinki," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 4(Special I), pages 1-14, august.
    16. Claudio Raddatz & Sergio Schmukler, 2013. "Deconstructing Herding: Evidence from Pension Fund Investment Behavior," Journal of Financial Services Research, Springer;Western Finance Association, vol. 43(1), pages 99-126, February.
    17. de la Torre, Augusto & Gozzi, Juan Carlos & Schmukler, Sergio L., 2007. "Stock market development under globalization: Whither the gains from reforms?," Journal of Banking & Finance, Elsevier, vol. 31(6), pages 1731-1754, June.
    18. Mr. Martin Cihak & Mr. Wim Fonteyne, 2009. "Five Years After: European Union Membership and Macro-Financial Stability in the New Member States," IMF Working Papers 2009/068, International Monetary Fund.
    19. Elisabeth Beckmann & Mariya Hake & Jarmila Urvová, 2013. "Determinants of Households’ Savings in Central, Eastern and Southeastern Europe," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 8-29.
    20. de la Torre, Augusto & Martínez Pería, María Soledad & Schmukler, Sergio L., 2010. "Bank involvement with SMEs: Beyond relationship lending," Journal of Banking & Finance, Elsevier, vol. 34(9), pages 2280-2293, September.

    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:cbu:jrnlec:y:2015:v:4:p:155-163. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ecobici Nicolae (email available below). General contact details of provider: https://edirc.repec.org/data/fetgjro.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.