The Impact of Financial Openness on Economic Integration: Evidence from the Europe and the Cis

dy

Per-capita income gap. Difference between EU
average log per-capita income and country's log per-
capita income

WDI

dn

Difference between EU average log fertility rate and
country's log fertility rate

WDI

dh

Difference between EU average tertiary school
enrolment rate and country's tertiary school enrolment
rate

WDI

dk

Difference between EU average real investment share
of GDP and country's real investment share of GDP

WDI and PWT

q

Index of domestic financial development: country's
ratio of liquid liabilities to narrow money. Alternative
definitions used for sensitivity analysis: domestic
credit to private sector to GD ratio and liquid
liabilities to GDP ratio.

IFS

dq

Difference between EU average q and country's q

IFS

trade

Country's exports to and imports from EU.

DoTS

YiYj

Log of country's aggregate GDP times EU's aggregate
GDP

WDI

locked

Dummy variable taking value if country is landlocked

CIA World
Factbook

border

Dummy variable taking value 1 if country shares a

CIA World

land border with any EU-15 member

Factbook

D

Log of distance (in kilometres) between country and

CIA World

Frankfurt-am-Main

Factbook

z

Index of capital account openness

See Section 3

p

Index of international financial integration. Two
versions are proposed: p1 and p2

See Section 3

dz

Difference between EU average open and country's
open