Homogeneity of Determinants in the Financial Sector and Investment in EU Countries

Erika Urbankova and David Krizek
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Erika Urbankova: Czech University of Life Sciences, Kamýcká 129, 165 00 Prague, Czech Republic
David Krizek: Czech University of Life Sciences, Kamýcká 129, 165 00 Prague, Czech Republic

Economies, 2020, vol. 8, issue 1, 1-17

Abstract: This paper evaluates the homogeneity of the financial markets in European Union (EU) countries and the impact of determinants of the financial sector in individual EU countries on the investment by economic entities in the given countries. The objective of the paper is to evaluate the homogeneity of financial sectors in EU countries in terms of individual indicators. The paper also evaluates the interdependence between the loan amount (debt and liabilities of the financial sector) on one side and the selected investments on the other. This paper uses the statistical method of correlation analysis to determine the strength and closeness of dependence among indicators, and the multidimensional statistical method of cluster analysis to determine the homogeneity among the individual countries. The results show that, in terms of financial markets, there is still a difference between developed countries in terms of Gross Domestic Product and the rest of the EU Member States. However, in the case of investment activity that is no longer. Partial integration therefore takes place within the EU, in terms of financial markets.

Keywords: financial sector; debt; loans; obligations; investment; European Union; correlation and regression analysis; cluster analysis. (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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