The New Capital Markets in Central and Eastern Europe

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Michael Schröder

Since the collapse of the communist regimes in 1989, the Central and Eastern Europe (CEE) countries have been undergoing a transition period from a command economy to a market-orientated economic system. The prospects of EU enlargement in Eastern Europe and the dramatic effects that the Russian crisis has had on world capital markets awakened interest in those markets.

The authors tackle these issues by focusing their research efforts on two axes: in the first part the aim is to assess the current situation and future development of the CEE capital markets and Russia. This part deals with the macroeconomic situation of those countries as well as the regulatory framework; market structures; situation for institutional investors; efficiency of the stock markets; and the co-movements of these emerging markets with major Western markets. 

In the second part the authors focus on the integration of CEE countries into the EU and the resulting consequences for CEE capital markets. Specifically, the report analyses how the legal framework and the financial sector have to be transformed to cope with EU integration, and the effects of such integration on the corporate, public and financial sector of those countries.