Development of equity market and its significance in the Slovak economy

• Authors: Sławomir I. Bukowski
• Languages of publication: EN

Abstracts

EN

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)

Keywords

EN

Financial markets; Financial integration; Equity market; Economic growth; Econometric models

PL

Rynki finansowe; Integracja finansowa; Rynek akcji; Wzrost gospodarczy; Modele ekonometryczne

• Publisher: Instytut Naukowo-Wydawniczy "SPATIUM"
• Journal: Central European Review of Economics & Finance
• Year: 2014
• Issue: Vol. 4, No 1
• Pages: 5-20

Contributors

author

Sławomir I. Bukowski

• Kazimierz Pułaski University of Technology and Humanities in Radom, Poland

References

• Adam K., Japelli T., Menichini T., Padula A., Pagano M. (2002), Analyse, Compare, and Apply Alternative Indicators and Monitoring Methodologies to Measure the Evolution of Capital Market Integration in the European Union, European Commission, Brussels.
• Baele L., Ferrando A., Hördal P., Krylova E., Monnet C. (2004), Measuring Financial Integration in the Euro Area, "European Central Bank: Occasional Paper Series", No. 14/April.
• Baltzer M., Cappiello L., De Satntis R.A., Manganelli S. (2008), Measuring Financial Integration in New EU Member States, "European Central Bank: Occasional Paper Series" No 81/March.
• Beck T., Al-Hussainy E., Financial Structure Dataset, Revised March 2010, World Bank, Washington D.C. 2010.
• Bieniewicz A., Mobus A. (2008), Giełda papierów wartościowych w Słowacji, w: Ziarko- -Siwek U. (ed.) (2008), Giełdy kapitałowe w Europie, CeDeWu.PL Wydawnictwa Fachowe, Warszawa.
• Brzeszczyński J., Kelm R.(2002), Ekonometryczne modele rynków finansowych, WIG- -Press, Warszawa.
• Bukowski S.I.(2011), Międzynarodowa integracja rynków finansowych, Difin, Warszawa 2011.
• Dębski W., Maciejczyk I., Wdowinski P. (2010), Growth Effects of Financial Market development in Poland: Simulations with an Econometric Model, w: S.I. Bukowski (ed.), Global Challenges of the 21st Century, Technical University of Radom, Publishing Office, Radom.
• Financial Integration in Europe. Statistical Annex. ECB April 2011.
• Jajuga K.(2008) Financial Econometrics - 25 Years Later. "Dynamic Econometric Models", Vol. 8 - Nicolaus Copernicus University - Toruń .
• Kowalak T.(2006), Integracja rynków kapitałowych w Unii Europejskiej, TWIGER, Warszawa.
• Levine R. (1997), Financial Development and Economic Growth: Views and Agenda, "Journal of Economic Literature", Vol/ XXXV (June), pp. 688-726.
• Mills T.C., Markellos R.N.(2008), Th e Econometric Modelling of Financial Time Series, Third Edition, Cambridge University Press, Cambridge.
• www.bsse.sk