TESTING STOCK MARKETS’ INTEGRATION FROM CENTRAL AND EASTERN EUROPEAN COUNTRIES WITHIN EURO ZONE

Stock market integration gives the opportunity of risk diversification on international level. The main effects of this integration are the development of stock markets and economic growth. This paper analyses the integration of stock markets from Central and Eastern Europe using convergence. Beta-convergence gives us information about integration’s speed and sigmaconvergence presents information about the degree of integration of stock markets from Central and Eastern Europe on the stock market of Euro Zone.