A NEURAL NETWORKS PERSPECTIVE ON THE FINANCIAL INTEGRATION OF EUROPEAN CAPITAL MARKETS

作者：Horobet Alexandra^*; Belascu Lucian; Ionita Irhia; Serban Anca Teodora

来源：Economic Computation and Economic Cybernetics Studies and Research, 2014, 48(1): 115-126.

• Capital markets
• financial integration
• cluster analysis
• Self-organization map
• neural networks

We use a Self-organization Map algorithm (SOM) to investigate the changes in the level of EU capital markets' integration before and after the recent financial and sovereign debt inter-twinned crises, based on data on capital market features for all 27 EU countries, collected from various databases, such as ECB, EUROSTAT, OECD and WFE. A number of indicators that reflect the level of capital market development and its level of openness is taken into account for each country, on an annual basis, in order to have a proper view on capital markets' features both from the perspective of market performance and market development. We find that the European capital markets form a rather heterogeneous structure, with a number of stable clusters that move towards more homogeneity formed of mature capital markets in the EU, and with other smaller clusters, which typically include the emerging markets in the EU, which seem to be less integrated with the other EU capital markets.

• 出版日期2014