FINANCIAL GLOBALIZATION IN THE EMERGING BALKANS : exploring financial trends on the eve of eu... membership

This book explores financial trends in the age of financial globalization and explores the changing roles within the global financial industry. At the same time, the book provides a solid foundation for understanding the dramatic process of financial globalization specifically in the emerging Balkans. More elaborately, the book examines financial trends and developments of eight countries in the emerging Balkans defined to include: Albania, B&H, Bulgaria, Croatia, Montenegro, North Macedonia, Serbia, and Romania. Building on this background, this book addresses issues related to the emerging Balkans in terms of financial development compared with the benchmark of mature economies and highlights issues related to the growing impact of financial globalization, global trade, and FDI flows. It brings the focus onto the recent trends in Intra-Balkan trade liberalization and cooperation through the transition process and on the eve of EU membership. It also assesses progress made in banking development, stock market development, and economic growth and critically examines financial trends in the emerging Balkans and changes in its financial landscape. Mehmed Ganić is a specialist in East and Central European economics. He has published more than 150 scientific and research papers internationally and has authored three books throughout his professional career. He is currently working as an Associate Professor of Economics/International Finance at the International University of Sarajevo (IUS) in Bosnia and Herzegovina Foreword 5 Contents 7 Abbreviations 10 List of Figures 12 List of Tables 14 1 Introduction 16 2 Emerging Balkans and Its Recent Experience with Transition 20 2.1 Introduction 20 2.2 Transition to a Market Economy: Reality or Necessity? 21 2.3 Liberalization, Debt, and External (Im) Balances 25 2.4 Privatization and Institutional Reforms 29 2.5 Transition Development (Dis)Similarities: A Cluster Analysis 35 2.6 Conclusion 40 References 41 3 Financial Globalization 43 3.1 Introduction 43 3.2 Goods, Services, and Financial Flows 45 3.3 The Key Trends 47 3.4 International Capital Flows into the Emerging Balkan Countries 52 3.5 Are Emerging Balkan Countries Different from Other States? 54 3.6 Conclusion 59 References 59 4 New Regionalism and the Emerging Balkans: Regional Trade Integration and EU Accession Process 62 4.1 Introduction 63 4.2 Trade Liberalization and Regional Integration 63 4.3 Trade Performance Indicators 66 4.4 Intra-Balkan Trade Liberalization: CEFTA 2006 70 4.5 Are Trade Linkages Among CEFTA 2006 Members Strong? 73 4.6 Conclusion 77 References 78 5 Road to Success: Balkans Banking in Transition 81 5.1 Introduction 81 5.2 The Region’s Experience with Banking Transition 82 5.3 Banking Sector Development 89 5.4 Banking Soundness and Stability 93 5.5 Conclusion 98 References 98 6 Does Stock Market Development Cause the Economic Growth? A Panel ARDL Bounds Testing Approach 101 6.1 Introduction 102 6.2 Literature Review 103 6.3 Model Specification 106 6.4 Empirical Findings 109 6.5 Conclusion 112 References 112 7 Recent Financial Sector Developments 116 7.1 Introduction 116 7.2 The Structure of the Financial System 117 7.3 Financial Intermediaries Structure 122 7.4 Financial Euroization 125 7.5 Financialization of Financial Sector 129 7.6 Macroprudential Policy in the Aftermath of the Recent Global Financial Crisis—The Region’s Experiences 134 7.7 Conclusion 137 References 137 8 What Is Driving International Financial Integration in the Emerging Balkans? 141 8.1 Introduction 142 8.2 Literature Review 142 8.3 Methodology and Data 144 8.4 Findings and Discussion 149 8.5 Conclusion 156 References 156 Index 159 This book explores financial trends in the age of financial globalization and explores the changing roles within the global financial industry. At the same time, the book provides a solid foundation for understanding the dramatic process of financial globalization specifically in the emerging Balkans. More elaborately, the book examines financial trends and developments of eight countries in the emerging Balkans defined to include: Albania, B&H, Bulgaria, Croatia, Montenegro, North Macedonia, Serbia, and Romania. Building on this background, this book addresses issues related to the emerging Balkans in terms of financial development compared with the benchmark of mature economies and highlights issues related to the growing impact of financial globalization, global trade, and FDI flows. It brings the focus onto the recent trends in Intra-Balkan trade liberalization and cooperation through the transition process and on the eve of EU membership. It also assesses progress made in banking development, stock market development, and economic growth and critically examines financial trends in the emerging Balkans and changes in its financial landscape. Mehmed Ganić is a specialist in East and Central European economics. He has published more than 150 scientific and research papers internationally and has authored three books throughout his professional career. He is currently working as an Associate Professor of Economics/International Finance at the International University of Sarajevo (IUS) in Bosnia and Herzegovina This book explores financial trends in the age of financial globalization and explores the changing roles within the global financial industry. At the same time, the book provides a solid foundation for understanding the dramatic process of financial globalization specifically in the emerging Balkans. More elaborately, the book examines financial trends and developments of eight countries in the emerging Balkans defined to include: Albania, B & H, Bulgaria, Croatia, Montenegro, North Macedonia, Serbia, and Romania. Building on this background, this book addresses issues related to the emerging Balkans in terms of financial development compared with the benchmark of mature economies and highlights issues related to the growing impact of financial globalization, global trade, and FDI flows. It brings the focus onto the recent trends in Intra-Balkan trade liberalization and cooperation through the transition process and on the eve of EU membership. It also assesses progress made in banking development, stock market development, and economic growth and critically examines financial trends in the emerging Balkans and changes in its financial landscape