Financial Market Integration and Growth

Structural Change and Economic Dynamics in the European Union

herausgegeben von: Paul J.J. Welfens, Cillian Ryan

Verlag: Springer Berlin Heidelberg

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

Financial capital, whether mediated through the financial market or Foreign Direct Investment has been a key factor in European economic growth. This book examines the interaction between European and global financial integration and analyses the dynamics of the monetary sector and the real economy in Europe. The key analytical focus is on the theoretical and empirical dynamics of financial markets in Europe, however, it also provides regional case studies of key institutional developments and lessons from foreign direct investment. There is a broad range of findings for Central, Eastern and Western Europe as well as EU Partner Countries. Crucially the analysis includes new approaches and options for solving the transatlantic banking crisis and suggests policy innovations for a world with unstable financial markets.

Inhaltsverzeichnis

Frontmatter

Chapter 1. The Role of Banks in Financial Integration: Some New Theory and Evidence from New EU Members

Abstract

Over the last two decades, there have been major changes in the Central and Eastern European Countries (CEECs) as their economies collapsed and they undertook the journey from centralised economies to market-based systems. The initial effects of the transformation process involved substantial reductions in output and the need for a complete restructuring of industry.

Cillian Ryan, Nicholas Horsewood

Chapter 2. Interdependence Between Foreign Exchange Markets and Stock Markets in Selected European Countries

Abstract

Since the 1970s the discussion about the interdependence between foreign exchange markets and stock markets has been the subject of many studies. In the late 1990s, it even experienced a further intensification due to the financial and currency crisis in Asia, with fast and massive adjustments in both foreign exchange markets and stock markets being observed.

Mevlud Islami

Chapter 3. The Transatlantic Banking Crisis: Lessons, EU Reforms and G20 Issues

Abstract

Financial market globalization was reinforced in the decade following 1995, and one might expect major benefits from sustainable globalization. There is no doubt that securitization of loans and foreign direct investment of banks as well as internationalization of the banking business has intensified over time (Deutsche 2008; ECB 2008);

Paul J. J. Welfens

Chapter 4. Financial System and Innovations: Determinants of Early Stage Venture Capital in Europe

Abstract

From the 1990s until now, the most developed economies in Europe have significantly lower GDP growth rates than the US. These considerable lower growth rates go along with lower productivity growth and a poor development on the labour markets in the most European countries, especially in the large economies like Germany, France and Italy.

Christian Schröder

Chapter 5. Evolving Corporate Financing Patterns in Europe: Is There Convergence?

Abstract

One of the main objectives behind the formation of the European Union (EU) is attainment of financial integration among member countries. Greater financial integration is expected to facilitate financial sector efficiency, macroeconomic stability and effective implementation of monetary policy in the EU (Trichet 2006).

Andy Mullineux, Victor Murinde, Rudra Sensarma

Chapter 6. The Financial System in Spain and Portugal: Institutions and Structure of the Market

Abstract

In the EU, there is a general consensus about the need for greater financial integration. It is regarded as beneficial for the improved efficiency of the financial systems of the individual member states, as well as being a factor in promoting greater European integration. It is therefore not surprising that financial integration has been one of the priority areas within the schedule of projects and reforms in the EU.

Antonia Calvo Hornero, Ignacio Garrido Sánchez

Chapter 7. Corporate Governance and the ‘Hybridisation’ of Financial Sectors

Abstract

Since the early 1970s there has been substantial liberalisation of the banking sector and financial innovation. The process has been facilitated by re-regulation of banks (Mullineux 1987, pp. 30–63, 83–125, 126–153, 154–165), which continue to lie at the heart of all financial systems (Mishkin 2004, pp. 23–43), and necessitated ongoing revisions in prudential regulation, and monetary policy.

Andy Mullineux

Chapter 8. Different Modes of Foreign Direct Investment in Ireland: A Theoretical Analysis

Abstract

A high inflow of Foreign Direct Investment (FDI) has been observed in Ireland in recent decades. The significance of foreign firms manifests itself in several key figures: the FDI inflows (as a percentage of the GDP) have been higher than the EU average since the beginning of the 1990s (Goerg and Ruane 2000, p. 408). The FDI stock per capita almost exceeded the EU average fivefold in the year 2000.

Mareike Koeller

Chapter 9. Aspects of Market Integration in a Transition Economy

Abstract

Within an international context, market integration studies are related – among others – to issues of the law of one price, dispersion of prices, pricing-to-market, and purchasing power parity. The most important conclusion one can draw from this work is that some types of friction provide considerable barriers to the integration of markets within a nation as well as across nations. A number of studies found that the speed of price convergence depends upon geographical distance, information costs, good and location specifics, currency fluctuations and national political borders.

Julius Horvath, Katarina Lukacsy

Chapter 10. Trade and FDI Related Effects of the Monetary Union and Structural Adjustment in the Central European New Member States of the EU

Abstract

The EU is the world’s largest market, with vast natural, technological and human resources. It encompasses 27 countries and about 500 million people with different needs to be satisfied and resources to offer. The EU is the largest trading bloc of countries of the world. The total trade turnover with other countries of the world and the intra-trade among the EU member states makes up about 40% of global trade. The flows of foreign direct investments are closely connected to the trade patterns. The EU member states also compete strongly to attract investment that can yield benefit from the potential of these resources.

Kalman Dezseri

Titel: Financial Market Integration and Growth
herausgegeben von: Paul J.J. Welfens
Cillian Ryan
Verlag: Springer Berlin Heidelberg
Electronic ISBN: 978-3-642-16274-9
Print ISBN: 978-3-642-16273-2
DOI: https://doi.org/10.1007/978-3-642-16274-9