Analysis of stock market development in Central and Eastern Europe

Abstract

Introduction. The role of the stock market in the economy of different countries is difficult to underestimate. The stock market is that the mechanism through which savings are transformed into investments, thus providing opportunities for long-term economic growth. But this function of stock market depends on the level of its development.

Purpose.The article is an analysis of stock market development in Central and Eastern Europe. Its main objective is the determination of the impact of this market on economic growth and the inflow of foreign capital into the economy of the countries under the study.

The method (methodology). In this research we have used the following methods: the method of comparison, metho of classification, method of summarization and method of graphical analysis.

Results. We have come to the conclusion that the level of stock market development in Central and Eastern Europe is rather low. The stock markets of Poland, Hungary and the Czech Republic are the most advanced among the countries of Central and Eastern European. They play an important role in attracting foreign direct investment in the economies of the countries under study. There is not any  relationship between stock market development and economic growth in Central and Eastern Europe.