Macroeconomic aspects of financial liberalization

The positive and the negative macroeconomic aspects of the financial liberalization for the developing and emerging economies are well described in the present literature. But it is not easy to clearly summarize the final effects of the financial integration on the certain country. For instance, the argument about the growth benefits of the capital account liberalization is likely to be inadequate considering the financial crises in the emerging markets at the end of the last century. On the other hand, many authors (especially in the financial literature) report that the equity market liberalizations help to significantly boost the economic growth. There are also some examples on the microeconomic level (firm level or industry level), when the international financial integration brings certain benefits to the integrated enterprises and the capital flows restriction leads to the distortionary effects. In the paper we analyze the macroeconomic effects of the capital flows liberalizationCapital account liberalization, Financial liberalization, Financial

Decomposition of External Capital Inflows and Outflows in the Small Open Transition Economy (The Case Analysis of the Slovak Republic)

The main objective of the proceeding is to perform a logical decomposition of the structure of external capital inflows and outflows in the Slovak republic in order to analyze the main trends in the external financial integration and its development through the period of 1994-2006. In order to fulfill our objective we observe the changes in the structure of external financial assets and liabilities in order to provide the explanation of main trends in the external capital portfolio of the Slovak republic. Finally, we explore the implications of the accumulated stock of external capital for future trade and current account balances.Financial integration, External capital structure, Foreign financial assets, Foreign financial liabilities, Transition economies

A Dynamic Approach to Interest Rate Convergence in Selected Euro-candidate Countries

We advocate a dynamic approach to monetary convergence to a common currency that is based on the analysis of financial system stability. Accordingly, we empirically test volatility dynamics of the ten-year sovereign bond yields of the 2004 EU accession countries in relation to the eurozone yields during the January 2, 2001 untill January 22, 2009 sample period. Our results show a varied degree of bond yield co-movements, the most pronounced for the Czech Republic, Slovenia and Poland, and weaker for Hungary and Slovakia. However, since the EU accession, we find some divergence of relative bond yields. We argue that a ‘static’ specification of the Maastricht criterion for long-term bond yields is not fully conducive for advancing stability of financial systems in the euro-candidate countries.interest rate convergence, common currency area, new EU Member States, interest rate risk, GARCH

A bibliometric review of the research papers of the Central Bank of Turkey

This paper presents a bibliometric assessment of the research papers produced in the Central Bank of the Republic of Turkey from 1988 to 2009. Concentration over subjects and the Journal of Economic Literature (JEL) classification codes are provided in addition to the time distribution of bibliography cited in the research papers. Overall, it is observed that the examined series did provide an adequate pool of knowledge for both academics and the general public.Bibliometrics; Central bank research; Economic research

Controversies and Challenges along the Access - Absorption Route of the European Structural Funds

According to Copenhagen criteria, any country formulating its option to adhere at the European Union has the obligation to meet a series of requirements: - the consolidation and the stability of the fundamental institutions that guarantee the lawful state and the human rights; - a functional and competitive market economy on the model of the traditional developed economies; - the reform of the administrative structures in order to ensure the country’s compatibility with the status of member state, which involves assuming, accepting and reaching the objectives of the Union from a political, economic and monetary perspective. Therefore, the social and economic convergence and cohesion constitutes the essential working principles of the Union and, at the same time, they contain the quintessence of the operating reason of the structural European funds, equally oriented during the pre- and post-adherence stage, as true and efficient tools of implementation of the regional policies. Co-opted in this continental construction at a moment of real integration effervescence, which took place simultaneously with the expansion of the Union’s space, Romania stated its pro-western option without hesitation and, as a result, it aligned its entire social and economic organism to the European institutional and behavioral biorhythm.Structural European Funds; Access; Absorption;, Communitary Budget

AN ANALYSIS OF THE SEPA CARDS FRAMEWORK (SINGLE EURO PAYMENTS AREA) ADOPTION IN ROMANIA

The study examines the actual status and the future application of Single Euro Payments Area SEPA Cards Framework, based on Romanian experience. The paper highlights the fact that there is no national card scheme in Romania and that the local cards marketSingle Euro Payments Area (SEPA) Cards Framework SCF, National card scheme, Challenges of the SCF implementation in Romania

THE FINANCING OF THE ADMINISTRATIVE - TERRITORIAL UNITS IN THE WEST DEVELOPMENT REGION THROUGH THE REGIONAL OPERATIONAL PROGRAMME 2007 - 2013

It is very important to be found methods to increase the competitiveness between the Romanian administrative-territorial units, under the current conditions of the economic crisis, by means of the existing economic levers successfully used within the European Union regions. The development regions of Romania do not have the statute of administrative units, but they represent territorial units large enough to constitute a good basis for the elaboration and implementation of regional development strategies, allowing an efficient use of the financial and human resources. The scope for which these development regions were created had in view the support granted for the larger communities in their action to settle the problems which go beyond the administrative borders and which surpass the financial possibilities of one county. n Romania, the communes, towns, municipalities and counties are defined as administrative-territorial units within which the local autonomy is exercised and the authorities of the local public administration are organized and operate. The local, communal, town, municipality and county councils, as deliberative authorities, and also the mayors and the presidents of county councils as executive authorities have the duties to solve the public matters of the community, acting as authorities of the Romanian public administration. In Romania, the local autonomy is only administrative and financial, having as objective the organization, operation, competencies and tasks, and also the management of the inland resources. The principle of the local financial autonomy implies the fact that the administrative-territorial units have the right to financial resources, which can be used by the authorities of the local public administration when exercising their tasks. According to the Law of the local public finances, the local budget incomes could be made also of the non-reimbursable funds granted by the European Union. Based on the elaborated and assumed strategies of local development, and also on the experience gained by the administrative-territorial units in accessing the governmental funds and the pre-accession programs, the authorities of the local public administration from the West Development Region knew how to successfully access the non-reimbursable financing opportunities granted through the Regional Operational Programme 2007 - 2013. The status analysis of the implementation of the projects submitted by the administrative-territorial units from the West Development Region and financed through the Regional Operational Programme 2007 - 2013 highlights which are the main areas of interest for the authorities of the public local administration and gives practical solutions for the reduction of the intra-regional development gaps. This article is intended to be a guide for the administrative-territorial units in the systematic mobilization of the existing local energies and resources by means of certain projects which should meet the specific needs for development and which should involve the attraction of non-reimbursable funds with a minimum effort of co-financing.administrative-territorial units, non-reimbursable funds, region, local autonomy, projects

On the empirical evidence of the intertemporal current account model for the euro area countries

In this paper we present a novel approach to the empirical validation of the intertemporal approach to the current account. We develop a calibrated model highlighting the role of consumption smoothing and capital accumulation in the economic convergence process. After solving the model, we derive the theoretical values for the euro area countries’ current account, testing to what extent they match reality. The model explains most of the dispersion in the current account and saving ratio, though cannot equally well capture differences in the investment ratios. The conclusion that we draw is that consumption smoothing, based on expectations of economic convergence, is driving the current account of the euro area countries over medium-term horizons. Capital accumulation appears to play a less pronounced role. JEL Classification: D91, F36, F41current account, euro area, General equilibrium models, intertemporal optimisation

Financial Globalization and Crisis: the Role of Local Financial Markets

In this paper, I provide a specific channel through which financial development helps economic growth: by reducing the incidence of crises and making them less severe. To support this, I examine the various links among financial markets development, financial crisis, and GDP growth rate. My empirical estimates, using cross-country data from 1980 to 2007, show a statistically significant and economically relevant effect among these variables: countries with better local financial markets can largely decrease the frequency of occurrence of financial crisis, and that efficient banking systems can alleviate the adverse impact of banking crisis on output lost for the long-run, while better stock market can do it for the short-run

Will we pay the same way? Empirical evidence of payment behaviours convergence on EMU panel data

The purpose of this study is to analyze the observed changes in payment behaviours by underlining the influence of factors such as financial opening, regulations and technological innovation. We show how forces acting in order to mould the national retail banking markets into a Single Payment Area (SPA) within the European Monetary Union (EMU) have impacted the payment instruments demand. We analyse the integration process and measure the importance of its major steps by testing the convergence of payment behaviours. We develop a model of conditional convergence concerning the use of five payment instruments: cash, card, cheque, credit transfer, and direct debit. The tests of conditional convergence are carried out using the techniques of instrumental variables on annual panel data in EMU. The results demonstrate that convergence occurs on demand for all payment methods except cheque.bank supply; convergence; retail payment market