The euro and european financial market intergration the case france and germane

Abstract EN

This paper examines if the period of the 1990s was characterized by increased stock market integration between the Frech and German stock markets over the 1990-2008 periods.

This issue is carried out through a Dynamic Conditional Correlation DCC form of EGARCH model by Nelson 1991.

Using daily prices, the researchers found out that the increase in financial market correlation started around the beginning of 1998 when Euro membership was determined and the relevant information announced, which means that the markets integration increased after the Euro and become more integrated.