Assuming that the process of capital markets integration in Europe is unquestionable, the main goal of the research is to examine the effects of this integration visible in observed similariries in 20 European stock exchanges. The analyses were based on 48 monthly variables dating from 2003-2006 period. The source of the data is the Federation of European Stock Exchanges. According to the research hypothesis the discrepancies between the analyzed capital markets should gradually decrease in time, as a result of convergence process. The hypothesis is verified with the use of selected methods of multivariate statistical analysis, such as cluster analysis or k-means grouping. The analyses performed reveal that the differences between the stock exchanges are still significant. The discrepancies can be observed in all three areas examined, i.e. in the size of market, equity market and bond market. Moreover, the identified diversity confirms the division of the European Union countries into old and new members. However, the differences revealed tend to diminish slightly, proving that the economic distance between European capital markets is slowly decreasing.
Financed by the National Centre for Research and Development under grant No. SP/I/1/77065/10 by the strategic scientific research and experimental development program:
SYNAT - “Interdisciplinary System for Interactive Scientific and Scientific-Technical Information”.