FINANCIAL AND TRADE INTEGRATION OF SELECTED EU REGIONS: DYNAMIC CORRELATION AND WAVELET APPROACH

• Authors: Kučerová Zuzana , Jitka Poměnková
• Languages of publication: EN

Abstracts

EN

We evaluate the process of financial and trade integration in 26 European Union (EU) countries over the period 1993 – 2012. We distinguish between “new” and “old” EU countries to compare the processes of financial and trade integration in the developed countries and formerly central-planned economies. We use classical and moving correlation, dynamic correlation and wavelet co-spectrum. The classical and moving correlation shows the strong relation until 2008. The dynamic correlation confirms strong relation for long and business cycle frequencies. Specification via wavelet co-spectrum reveals that long frequencies are correlated in the period 200 – 2009, business cycle frequencies in the period 1993 – 1994 and 2003 – 2004 and middle frequencies generally in the period 2008 – 201. The process of financial integration was stronger in the old EU member countries while the process of trade integration in the new member countries.

Keywords

EN

FINANCIAL INTEGRATION; FOREIGN TRADE; INTERNATIONAL FINANCIAL MARKETS; CORRELATION ANALYSIS; WAVELET CO-SPECTRUM; EUROPEAN UNION

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2015
• Volume: 63
• Issue: 7
• Pages: 686 – 704

Contributors

author

Kučerová Zuzana

• VSB-Technical University of Ostrava, Faculty of Economics, Sokolská tř. 33, 701 21 Ostrava, Czech Republic

author

Jitka Poměnková