2014 | Vol. 4, No 1 | 5-20
Article title

Development of equity market and its significance in the Slovak economy

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The aim of the paper is to present results of the empirical research into the equity market development and its significance in the Slovak economy and especially to answer the following questions: * What is the significance of the equity market in Slovak economy and its impact on economic growth? * What is the degree of the Slovak equity market integration with the euro area equity market? The following methods have been applied in the research: statistical analysis of the Slovak equity market significance in economy, analysis of the relationship between equity market development and economic growth based on the econometric model, analysis of the Slovak equity market integration with the Eurozone equity market based on the "news-based measure" and GARCH (1.1) model. The significance of the equity market is relatively smaller in Slovak economy than in other small- and medium-sized economies in the euro area. Yet, a statistically significant correlation between equity market development and economic growth exists in the Slovak economy. Slovak equity market was more integrated with the global market in the period 1999-2004, whereas in the years 2005-2011 it revealed a higher integration degree with the euro area equity market than with the global equity market. (original abstract)
Physical description
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