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

Variables description

Variables Definition

Source

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