Globalization brought increased attention to stock markets throughout the world. As a straightforward consequence of the economic integration between the European country members, the stock markets of these countries are expected to follow a path of steadily increasing integration due to the gradual intensification of the economic and monetary integration. However the establishment of EMU and the introduction of the common currency do not have the same effect on the European stock markets. The members of EMU were at different point of readiness when the final decision had been taken since many countries in EU were already taking part in other kind of integration initiatives. The main aim of this study is to analyze daily data of selected European stock markets in an attempt to point out significant changes in the degree of market integration among different stock markets using different econometric techniques.

peer-reviewed