Testing the "EU Announcement Effect" on Stock Market Indices and Macroeconomic Variables in Croatia Between 2000 and 2010

Anita Peša and Mejra Festić

Prague Economic Papers, 2012, vol. 2012, issue 4, 450-469

Abstract: We tested the hypothesis of procyclicality against the economic activity and stock exchange of Croatia - as a country preparing for EU accession - in order to investigate the spillover effect, i.e., the degree and pace of integration into larger financial markets such as the EU. The empirical findings obtained in application of OLS methodology for the 2000-2010 period provided evidence that EU accession is a trigger for a closer financial integration of a candidate country as Croatia; and a trigger for a rise in stock prices and economic revival, was reflected in by an increase in GDP and large FDI.

Keywords: regression; financial integration; procyclicality; EU integration; stock exchange (search for similar items in EconPapers)
JEL-codes: E44 F36 F43 F47 G15 (search for similar items in EconPapers)
Date: 2012
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DOI: 10.18267/j.pep.434

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