Loading...
The fundamental determinants of financial integration in the European Union
Lemmen,J.J.G. Eijffinger,S.C.W.
Lemmen,J.J.G.
Eijffinger,S.C.W.
Abstract
This paper focuses on the fundamental determinants of the degree of financial integration in the European Union over the period 1973-1993. Using closed interest differentials to measure the intensity of capital controls and applying a panel data approach, we find realized inflation rates, government deficits, current account deficits and credits to the domestic economy to be significantly positively correlated with the intensity of capital export restrictions. In addition, low productivity in the business sector and low availability of sophisticated deposit instruments are positively related to the intensity of capital export controls. Consequently, remaining differences in national economic and financial structures, should be of greater interest to policymakers.
Description
Pagination: 34
Date
1995
Journal Title
Journal ISSN
Volume Title
Publisher
Unknown Publisher
Files
Loading...
117.pdf
Adobe PDF, 1.35 MB
Research Projects
Organizational Units
Journal Issue
Keywords
Control, EU, Financial Integration, monetary economics, F36 - Financial Aspects of Economic Integration, E43 - Interest Rates: Determination, Term Structure, and Effects, F32 - Current Account Adjustment ; Short-Term Capital Movements
Citation
Lemmen, J J G & Eijffinger, S C W 1995 'The fundamental determinants of financial integration in the European Union' CentER Discussion Paper, vol. 1995-117, Unknown Publisher.