Financial and Trade Integration of Selected EU Regions: Dynamic Correlation and Wavelet Approach

Zuzana Kucerova and Jitka Poměnková

No 2014-45, MENDELU Working Papers in Business and Economics from Mendel University in Brno, Faculty of Business and Economics

Abstract: We evaluate the relation between financial and trade integration in new (formerly central-planned economies) and old (developed) EU countries. Classical and moving correlation shows the strong relation in the pre-crisis period. Dynamic correlation confirms strong relation for long and business cycle frequencies. Specification via wavelet cospectrum reveals that the long frequencies are correlated in 2000-09, business cycle frequencies in 1993-94, 2003-04 and middle frequencies generally in 2008-2010. The process of financial integration was stronger in the old EU member countries, the process of trade integration in the new member countries. The progress was smaller in financial compared to the trade integration.

Keywords: financial integration; foreign trade; international financial markets; correlation analysis; wavelet cospectrum (search for similar items in EconPapers)
JEL-codes: C23 C36 E44 F15 F21 F36 G15 (search for similar items in EconPapers)
Pages: 25
Date: 2014-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://ftp.mendelu.cz/RePEc/men/wpaper/45_2014.pdf Full text (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:men:wpaper:45_2014

Access Statistics for this paper

More papers in MENDELU Working Papers in Business and Economics from Mendel University in Brno, Faculty of Business and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Luděk Kouba ().