Financial Markets Relation in the Southwestern Balkan Region

Gerta GOGO & Gentjan ÇERA

The countries of Southwest Balkan Region have a similar story of economic transition. After the fall of the communist regime all these countries tried to establish a free market economy. These countries haven’t a full cooperation between each other. They adhere to join the EU. For this reason, each of these countries has to fulfill the framework of their vision, economic and social policies under EU directives set. Many free trade agreements were signed between themselves and with EU countries. Although, the region had a great economic development, still it is far behind compared to other countries that are part of the EU. Many studies concluded that the financial markets development affects economic growth. The financial markets in our region aren’t developed enough. One of the ways to develop these financial markets would be the creation of a joint financial market throughout the region. Through the Johansen cointegration test, we intend to study these markets integration possibilities.
Key words financial markets, indices, cointegration, correlation
JEL classification D53
PDF format below