ECONOMIC DYNAMICS – STOCK MARKET EVOLUTION: A RELATION COMMITTED TO DYSFUNCTIONALITY IN ROMANIA AND CROATIA

Authors

  • Ion POHOAŢĂ Alexandru Ioan Cuza University of Iasi
  • Delia Elena DIACONAŞU Alexandru Ioan Cuza University of Iasi
  • Oana Ramona SOCOLIUC Alexandru Ioan Cuza University of Iasi

Keywords:

economic crisis, economic growth, emerging markets, stock market capitalization, VAR models

Abstract

In the early 2000s’ the stock markets from Central and Eastern European perimeter began to develop quantitatively and qualitatively in an accelerated manner and Romania and Republic of Croatia did not made an exception to this trend and, also, had not been spared by the effects of the economic crisis, but on the contrary. Given that in this area the position of this institution within the economy is far from being ideal and the contradictory results of the previous studies, our analysis investigates the anomalous nexus between stock market development and economic growth in Romania and Republic of Croatia in the period 2000-2014. Using a VEC framework, our findings indicate a weak bidirectional relation between stock market capitalization and GDP in both cases and the main reasons are a high degree of concentration of stock exchange activity and contagion.

Author Biographies

Ion POHOAŢĂ, Alexandru Ioan Cuza University of Iasi

Deparment of Economics and International Relations, Professor of Economics

Delia Elena DIACONAŞU, Alexandru Ioan Cuza University of Iasi

Department of Reserach, Scientific Researcher III

Oana Ramona SOCOLIUC, Alexandru Ioan Cuza University of Iasi

Deparment of Economics and International Relations

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Published

15.01.2016

Issue

Vol. 5 No. 1 (2016)

Section

Accounting, Finance, Statistics and Economic informatics

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