The European Union, the Euro, and equity market integration
By: Geert Bekaert ... [et al.].
Contributors: National Bureau of Economic Research
Series: NBER working paper series -- working paper 16583; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16583.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "At a time of historic challenges to the viability of the Eurozone, we assess the contribution of the EU and the Euro to equity market integration in Europe.  We use a simple and essentially model free measure of bilateral market segmentation: two countries are segmented if there is a wide divergence in the valuations of their industries.  We first establish that segmentation is significantly lower for EU versus non- EU members.  Bilateral valuation differentials remain lower for EU members even after we control for several possible channels of integration, such as bilateral trade, direct investment positions, financial regulation, and interest rate differences.  Importantly, we find that EU membership reduces equity market segmentation between member countries whether or not members have also adopted the Euro.  The Euro adoption as well as the anticipation of the Euro adoption has minimal effects on market integration"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 3/31/2011.

Includes bibliographical references.

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