IDEAS home Printed from https://ideas.repec.org/h/spr/conchp/978-3-030-32426-1_6.html
   My bibliography  Save this book chapter

Assessing the Financial Integration of Eastern European Countries

In: Economic Development and Financial Markets

Author

Listed:
  • Özcan Karahan

    (Bandırma Onyedi Eylül University)

  • Metehan Yılgör

    (Bandırma Onyedi Eylül University)

  • Hakan Öndes

    (Bandırma Onyedi Eylül University)

Abstract

The relationship between domestic saving and investment provides important insights for the integration of national financial markets into the world capital market. In case of perfect financial integration, it is generally assumed that there should be no close relationship between national saving and investment. The aim of this study is to measure the degree of financial integration by exploring the saving-investment nexus in Eastern European countries. We employ panel cointegration and causality tests for the annual time series covering the period of 2000–2016. Empirical results show that there is a strong causality between domestic saving and investment rate by indicating the low degree of financial integration of the Eastern European countries into the world capital market. This finding also implies that Eastern European countries are not attracting enough foreign resources that serve as a stimulant to domestic investment as well as economic growth. As a policy implication, it could be asserted that policy-makers should focus on financial reforms promoting financial integration processes in order to attract enough foreign resources for economic growth.

Suggested Citation

  • Özcan Karahan & Metehan Yılgör & Hakan Öndes, 2020. "Assessing the Financial Integration of Eastern European Countries," Contributions to Economics, in: Adam Śliwiński & Persefoni Polychronidou & Anastasios Karasavvoglou (ed.), Economic Development and Financial Markets, pages 103-115, Springer.
    • Handle: RePEc:spr:conchp:978-3-030-32426-1_6
    DOI: 10.1007/978-3-030-32426-1_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:conchp:978-3-030-32426-1_6. 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.

    We have no bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.