Abstract
The Fundamental Determinants of Financial Integration in the European Union. — This paper focuses on the fundamental determinants of the degree of financial integration in the European Union over the period 1974–1993. Using closed interest rate differentials to measure the intensity of capital controls and applying a pooled cross-section time-series approach, the authors find realized inflation, government instability and gross fixed capital formation to have a strong and significantly positive effect on the intensity of capital export controls. In addition, they expect the influence of economic and financial market structure on closed interest rate differentials to increase in the future.
Zusammenfassung
Fundamentale Bestimmungsgründe für die finanzielle Integration in der EuropÄischen Union. — Die Verfasser behandeln die entscheidenden Bestimmungsgründe für das Ausma\ der finanziellen Integration in der EuropÄischen Union wÄhrend der Zeit 1974–1993. Sie benutzen die Zinsdifferenzen, die sich für Papiere gleicher WÄhrung zwischen Offshore und Onshore-MÄrkten ergeben, um die StÄrke der Kapitalkontrollen zu messen, und arbeiten mit einem kombinierten Querschnitts und Zeitreihenansatz. Sie stellen fest, da\ die tatsÄchliche Inflationsrate, politische StabilitÄt und Bruttokapitalbildung einen starken und signifikant positiven Einflu\ auf das Ausma\ der Kapitalexportkontrollen haben. Au\erdem erwarten sie, da\ der Einflu\ der wirtschaftlichen und finanziellen Marktstrukturen auf die Zinsdifferenzen in Zukunft zunehmen wird.
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