A note on the impact of EU accession on capital mobility in the case of Greece

In Greek economic history EU accession represents a major milestone. Among other effects, it has acted as a catalyst for the country’s integration in the international economy. This paper investigates whether this can find a modicum of empirical verification in the case of capital mobility and the economy’s links with the international capital markets. It does so by examining the saving-investment correlation using both the ARDL bounds testing procedure and Kalman filter methodology. The tests cover the period 1962-2002, as well as sub-periods, and the results obtained suggests that EU membership has positively impacted capital mobility in the case of Greece.