The Euro and Stock Markets in Hungary, Poland, and UK

Tomoe Moore ()
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Tomoe Moore: Coventry University, Postal: Tomoe Moore, Coventry Business School, Coventry University, Coventry, CV1, 5FB, United Kingdom,,

Journal of Economic Integration, 2007, vol. 22, 69-90

Abstract:

This paper aims to empirically investigate the effect of the euro on stock markets for Hungary, Poland and the UK, and also the co-movement of the stock prices with the euro-zone using the daily stock price indices. The result reveals that in order to develop the emerging stock markets, exchange rates should appreciate for Hungary, whereas they should depreciate for Poland. Furthermore, evidence of cointegration between the relative stock prices against Germany and exchange rates suggests that participating in the European Monetary Union may, ceteris paribus, stabilise the stock markets for these non-euro member states.

Keywords: Stock prices; Exchange rates; Cointegration; Poland; Hungary; UK; GARCH (search for similar items in EconPapers)
JEL-codes: F02 F31 G10 G30 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0386

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