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Integrarea pietei bursiere europene in contextul UEM
[European stock market integration under EMU]

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  • Avadanei, Andreea

Abstract

The aim of the present paper is to highlight the degree of European stock market integration. We structured our research on two sections obeying the following order: the first one presents some considerations of the academic literature studying the field and the second analyses the main financial indicators of stock market integration, namely venture capital, price based and quantitative indicators. Our concluding remarks show that regional euro-integration has proceeded more quickly than worldwide integration. At the same time, the level of the variance explained by common factors reveals that local shocks are still important. Quantity-based measures of euro-area equity market integration point out to a rising degree of integration. Since the introduction of the common currency Eurozone (EZ) investors have partially reallocated their equity portfolio from domestic holdings to holdings elsewhere within the EZ.

Suggested Citation

  • Avadanei, Andreea, 2011. "Integrarea pietei bursiere europene in contextul UEM [European stock market integration under EMU]," MPRA Paper 31086, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:31086
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    References listed on IDEAS

    as
    1. Baele, Lieven & Ferrando, Annalisa & Hördahl, Peter & Krylova, Elizaveta & Monnet, Cyril, 2004. "Measuring financial integration in the euro area," Occasional Paper Series 14, European Central Bank.
    2. De Santis, Giorgio & Gerard, Bruno, 1997. "International Asset Pricing and Portfolio Diversification with Time-Varying Risk," Journal of Finance, American Finance Association, vol. 52(5), pages 1881-1912, December.
    3. Baele, Lieven & Pungulescu, Crina & Ter Horst, Jenke, 2007. "Model uncertainty, financial market integration and the home bias puzzle," Journal of International Money and Finance, Elsevier, vol. 26(4), pages 606-630, June.
    4. Bekaert, Geert & Harvey, Campbell R, 1995. "Time-Varying World Market Integration," Journal of Finance, American Finance Association, vol. 50(2), pages 403-444, June.
    5. Lieven Baele & Annalisa Ferrando & Peter Hördahl & Elizaveta Krylova & Cyril Monnet, 2004. "Measuring financial integration in the euro area," Occasional Paper Series 14, European Central Bank.
    6. Lieven Baele, 2004. "Measuring European Financial Integration," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 20(4), pages 509-530, Winter.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial integration; stock market; consolidation; home bias; economic and monetary union.;
    All these keywords.

    JEL classification:

    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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