Financial integration and capital flows in the new EU Member States

Lorenzo Cappiello and Simone Manganelli

Research Bulletin, 2007, vol. 6, 5-7

Abstract: Recent empirical evidence shows that the financial markets in new EU Member States are significantly less integrated than the corresponding euro area markets. Nevertheless, the integration process is well under way and has even accelerated following EU accession. Progress in financial integration is also confirmed by capital inflows into these economies. This finding is however at odds with the capital outflows typically observed in other emerging economies. According to a recent strand of the literature, capital flows crucially depend, inter alia, on the quality of institutions. We argue that the reforms triggered by the accession process in the new EU Member States have contributed to improving their institutional framework and may therefore help to explain the observed capital flow patterns. JEL Classification: C32, F30, G12

Keywords: integration; new EU member states (search for similar items in EconPapers)
Date: 2007-06
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.ecb.europa.eu/pub/pdf/other/researchbulletin06en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbrbu:2007:0006:2

Access Statistics for this article

More articles in Research Bulletin from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().