(2003): “Benefits and Costs of International Financial Integration: Theory and Facts.” World Economy, Vol. ” Journal of International Financial Markets, Institutions and Money, Vol. KEARNEY (2006): “Interdependence and Integration in Emerging European Equity Markets.” Chapter 1 in: Batten, J. The analysis is performed at the country level (using national stock exchange indices) and at the sectoral level (considering banking, chemical, electricity and telecommunication indices). Our empirical evaluation consists of (1) an analysis of alignment (by means of standard and rolling correlation analysis) to outline the overall pattern of integration; (2) the application of the concept of beta convergence (through the use of time series, panel and state-space techniques) to identify the speed of integration; and (3) the application of so-called sigma convergence to measure the degree of integration. We find evidence of stock market integration on both the national and sectoral levels between the Czech Republic, Hungary, Poland and the euro area. DANTHINE (2003): “European Financial Integration and Equity Returns: A Theory-Based Assessment.” In: Gaspar, V., P. Slejpen (eds.): The Transformation of the European Financial System. The paper considers the empirical dimension of financial integration among stock markets in four new European Union member states (the Czech Republic, Hungary, Poland and Slovakia) in comparison with the euro area.
SALA-I-MARTIN (1992): “Convergence.” Journal of Political Economy, Vol. DRAZEN (1997): “Capital Account Liberalization as a Signal.” American Economic Review, Vol.