NBER

Mehmet Ekinci

Department of Economics
University of Rochester
Harkness Hall
Rochester, NY 14627

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: Central Bank of the Republic of Turkey

NBER Working Papers and Publications

January 2009Financial Integration within EU Countries: The Role of Institutions, Confidence and Trust
with Şebnem Kalemli-Özcan, Bent E. Sørensen
in NBER International Seminar on Macroeconomics 2007, Richard Clarida and Francesco Giavazzi, organizers
September 2007Financial Integration within EU Countries: The Role of Institutions, Confidence and Trust
with Sebnem Kalemli-Ozcan, Bent Sorensen: w13440
We investigate the degree of financial integration within and between European countries. We construct two measures of de-facto integration across European regions to capture "diversification" and "development" finance in the language of Obstfeld and Taylor (2004). We find evidence that capital market integration within the EU is less than what is implied by theoretical benchmarks and also less than what is found for U.S. states. We ask - why is this the case? Using country-level data for economic institutions, we find that these are not able to explain differences between countries. Using regional data from the World Values Surveys, we investigate the effect of "social capital" on financial integration among European regions. We find regions, where the level of confidence and trust is hig...

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