Development of Financial Markets in Central Europe: the Case of the CE4 Countries

May 1, 2011

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Format: Chicago

Amat Adarov, and Robert Tchaidze. Development of Financial Markets in Central Europe: the Case of the CE4 Countries, (USA: International Monetary Fund, 2011) accessed September 20, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Financial markets in the CE4 countries are still shallow compared to other advanced EU countries. While the government bond markets are comparable in size, measured by capitalization in percent of GDP, the private bond, private credit, and equity markets lag behind. Empirical analysis in this paper helps identify factors that explain this phenomenon. We find that the observed differences cannot be explained by macroeconomic variables only, but incorporating indicators of institutional development and external funding eliminates the gap in the case of the equity and private credit markets. However, for the private bond market a significant gap remains even after accounting for these factors.

Subject: Financial sector development, Market capitalization, Personal income, Securities markets, Stock markets

Keywords: Bond market, Credit market, GDP, Market, WP

Publication Details

Pages:

33
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2011/101
Stock No:

WPIEA2011101
ISBN:

9781455254323
ISSN:

1018-5941

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