Authors:
Jordan Kjosevski S.N Broker, Pitu Guli 5, Ohrid, Republic of Macedonia

Search for other papers by Jordan Kjosevski in
Current site
Google Scholar
PubMed
Close
https://orcid.org/0000-0001-9608-4090
,
Mihail Petkovski Department of Financial Management, Faculty of Economics, Ss. Cyril and Methodius University, Skopje, Republic of Macedonia

Search for other papers by Mihail Petkovski in
Current site
Google Scholar
PubMed
Close
, and
Aleksandar Stojkov Iustinianus Primus Law Faculty, Ss. Cyril and Methodius University, Skopje, Republic of Macedonia

Search for other papers by Aleksandar Stojkov in
Current site
Google Scholar
PubMed
Close
https://orcid.org/0000-0003-3993-6108
Restricted access

Abstract

The main goal of this paper is to analyse the impact of pension funds on capital market development in 11 new EU member states from Central and Eastern Europe using annual data for the period between 2000 and 2019. Given the geographical, institutional, political and economic differences across these countries, we split them into three homogenous groups: Balkan, Baltic and Visegrad countries. We use three different variables as a proxy for capital markets growth: stock market capitalization, the value of stock traded, and private bond market capitalization. We apply dynamic and fully-modified ordinary least squares to examine the relationship between the variables. The empirical results indicate that pension funds have a positive effect on the bond markets growth in all sub-groups but they do not impact the stock market growth in the Balkan and Baltic countries.

  • Ádám, Z.Simonovits, A. (2019): From Democratic to Authoritarian Populism: Comparing Pre- and Post-2010 Hungarian Pension Policies. Acta Oeconomica, 69(3): 333355.

    • Search Google Scholar
    • Export Citation
  • Afonso, A.Jalles, J. T. (2013): Do Fiscal Rules Matter for Growth? Applied Economics Letters, 20(1): 3440.

  • Aras, G.Muslumov, A. (2005): Institutional Investors and Stock Market Development: A Causality Study. Istanbul Stock Exchange Review, 8(29): 114.

    • Search Google Scholar
    • Export Citation
  • Baltagi, B. (2001): Econometric Analysis of Panel Data. (2nd ed.) Chichester: John Wiley & Sons.

  • Bayar, Y. (2016): Individual Pension Funds and Capital Market Development in Turkey. Review of Economic and Business Studies, 9(2): 95109.

    • Search Google Scholar
    • Export Citation
  • Bencivenga, V. R.Smith, B. D. (1993): Some Consequences of Credit Rationing in an Endogenous Growth Model. Journal of Economic Dynamics & Control, 17: 97122.

    • Search Google Scholar
    • Export Citation
  • Blommestein, H. (2001): Ageing, Pension Reform, and Financial Market Implications in the OECD Area .Working Paper, No. 9/01, Center for Research on Pensions and Welfare Policies, Paris.

    • Search Google Scholar
    • Export Citation
  • Claessens, S.Klingebiel, D.Schmukler, S. (2006): Stock Market Development and Internationalization: Do Economic Fundamentals Spur Both Similarly? Journal of Empirical Finance, 13(3): 316350.

    • Search Google Scholar
    • Export Citation
  • Corbo, V.Schmidt-Hebbel, K. (2003): Macroeconomic Effects of the Pension Reform in Chile. In: International Federation of Pension Fund Administrators: Pension Reforms: Results and Challenges. Santiago, Chile, pp. 241329.

    • Search Google Scholar
    • Export Citation
  • Daradkah, D.Al Namdoun, N. (2020): Pension Funds, Capital Market Development, and Macroeconomic Variables: Evidence from Jordan. Public Affairs, 21(2): 16.

    • Search Google Scholar
    • Export Citation
  • Dayoub, M.Lasagabaster, E. (2008): General Trends in Competition Policy and Investment Regulation in Mandatory Defined Contribution Markets in Latin America. Policy Research Working Paper, No. 4720. Washington D.C.: Worldbank.

    • Search Google Scholar
    • Export Citation
  • Enache, C.Miloş, L. R.Miloş, M. C. (2015): Pension Reform and Capital Market Development in Central and Eastern European Countries. Economic Research – Ekonomska Istraživanja, 28(1): 7584.

    • Search Google Scholar
    • Export Citation
  • Hryckiewicz, A. (2009): Pension Reform, Institutional Investors Growth and Stock Market Development in the Developing Countries: Does It Function? Working Paper, No.67, National Bank of Poland.

    • Search Google Scholar
    • Export Citation
  • Huybens, E.Smith, B. (1999): Inflation, Financial Markets, and Long-Run Real Activity. Journal of Monetary Economics, 43(2): 283315.

    • Search Google Scholar
    • Export Citation
  • Im, K. S.Pesaran, H. M.Shin, Y. (2003): Testing for Unit Roots in Heterogeneous Panels. Journal of Econometrics, 115(1): 5374.

    • Search Google Scholar
    • Export Citation
  • Impavido, G.Musalem, A.Tressel, T. (2003): The Impact of Contractual Savings Institutions on Securities Markets. Policy Research Working Paper, No. 2948. Washington D.C.: World Bank.

    • Search Google Scholar
    • Export Citation
  • Kao, C. (1999): Spurious Regression and Residual-Based Tests for Cointegration in Panel Data. Journal of Econometrics, 90(1): 144.

  • Kao, C.Chiang, M. H. (2001): On the Estimation and Inference of a Cointegrated Regression in Panel Data. In: Baltagi, B. H. (ed.): Nonstationary Panels, Panel Cointegration, and Dynamic Panels. Advances in Econometrics, Vol. 15. NY: Elsevier Science Inc., pp. 179222.

    • Search Google Scholar
    • Export Citation
  • Lean, H.Smyth, R. (2010): On the Dynamics of Aggregate Output, Electricity Consumption and Exports in Malaysia: Evidence from Multivariate Granger Causality Tests. Applied Energy, 87(6): 19631971.

    • Search Google Scholar
    • Export Citation
  • Maddala, G. S.Wu, S. (1999): A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test. Oxford Bulletin of Economics and Statistics, 61(S1): 631652.

    • Search Google Scholar
    • Export Citation
  • Masih, A.Masih, R. (1996): Energy Consumption, Real Income and Temporal Causality: Results from a Multi-Country Study Based on Cointegration and Error-Correction Modelling Techniques. Energy Economics, 18(3): 165183.

    • Search Google Scholar
    • Export Citation
  • Meng, C.Pfau, W. D. (2010): The Role of Pension Funds in Capital Market Development. National Graduate Institute for Policy Studies (GRIPS) Discussion Paper, No. 10–17.

    • Search Google Scholar
    • Export Citation
  • Pedroni, P. (2001): Purchasing Power Parity Tests in Cointegrated Panels. Review of Economics and Statistics, 83(4): 727731.

  • Pedroni, P. (1999): Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors. Oxford Bulletin of Economics and Statistics, 61(S1): 653670.

    • Search Google Scholar
    • Export Citation
  • Raddatz, C.Schmukler, S. L. (2008): Pension Funds and Capital Market Development: How Much Bang for the Buck? Policy Research Working Paper, No. 4787, Washington D.C.: World Bank.

    • Search Google Scholar
    • Export Citation
  • Raisa, M. L. (2012): Spillover Effects of Pension Funds on Capital Markets: The EU–15 Countries Case .Annals – Economy Series, Constantin Brancusi University, Faculty of Economics, 4: 164170.

    • Search Google Scholar
    • Export Citation
  • Rajan, R.Zingales, L. (2003): The Great Reversals: The Politics of Financial Development in the Twentieth Century. Journal of Financial Economics, 69(1): 550.

    • Search Google Scholar
    • Export Citation
  • Roodman, D. (2009): How to do Xtabond2: An Introduction to Difference and System GMM in Stata. Stata Journal, 9(1): 86136.

  • Thomas, A.Spataro, L. (2016): The Effects of Pension Funds on Markets Performance: A Review. Journal of Economic Surveys, 30(1): 133.

    • Search Google Scholar
    • Export Citation
  • Vassilios, B.Stavroyiannis, S. (2020): Pension Funds and Stock Market Development in OECD Countries: Novel Evidence from a Panel VAR. Finance Research Letters, Vol. 34.

    • Search Google Scholar
    • Export Citation
  • Zubair, A. K. I. (2016): Effects of Pension Funds’ Investments on Capital Market Performance in Nigeria. International Journal of Economics and Business Management, 2(9): 117.

    • Search Google Scholar
    • Export Citation
  • Collapse
  • Expand

Senior editors

Editors-in-Chief: István P. Székely, Dóra Győrffy

Editor(s): Judit Kálmán

Associate Editors

  • Péter Benczúr, Joint Joint Research Center, European Commission
  • Dóra Benedek, International Monetary Fund
  • Balázs Égert, OECD
  • Dániel Prinz, World Bank
  • Rok Spruk, University of Ljubljana, School of Economics and Business, Slovenia

Editorial Board

  • Anders Åslund, Georgetown University and Advisory Council of CASE, USA
  • István Benczes, Corvinus University of Budapest, Hungary 
  • Agnieszka Chłoń-Domińczak, SGH Warsaw School of Economics, Poland
  • Fabrizio Coricelli, University of Siena, Italy
  • László Csaba, Corvinus University of Budapest, Hungary and Central European University, Austria
  • Beáta Farkas, Faculty of Economics and Business Administration, University of Szeged, Hungary
  • Péter Halmai, Budapest University of Technology and Economics, and National University of Public Service, Hungary
  • Martin Kahanec, Central European University, Austria
  • Michael Landesmann, The Vienna Institute for International Economic Studies (WIIW), Austria
  • Péter Mihályi, Corvinus University of Budapest, Hungary
  • Debora Revoltella, European Investment Bank

Corvinus University of Budapest
Department of Economics
Fővám tér 8 Budapest, H-1093, Hungary
E-mail: judit.kalman@uni-corvinus.hu

Indexing and Abstracting Services:

  • CABELLS Journalytics
  • EconLit
  • Elsevier GEO Abstracts
  • GEOBASE
  • Index Copernicus
  • International Bibliographies IBZ and IBR
  • JEL
  • Referativnyi Zhurnal
  • RePEc
  • SCOPUS
  • Social Science Citation Index

 

2023  
Web of Science  
Journal Impact Factor 0.7
Rank by Impact Factor Q3 (Economics)
Journal Citation Indicator 0.23
Scopus  
CiteScore 1.4
CiteScore rank Q3 (Economics and Econometrics)
SNIP 0.385
Scimago  
SJR index 0.218
SJR Q rank Q4

Acta Oeconomica
Publication Model Hybrid
Submission Fee none
Article Processing Charge 900 EUR/article
Printed Color Illustrations 40 EUR (or 10 000 HUF) + VAT / piece
Regional discounts on country of the funding agency World Bank Lower-middle-income economies: 50%
World Bank Low-income economies: 100%
Further Discounts Editorial Board / Advisory Board members: 50%
Corresponding authors, affiliated to an EISZ member institution subscribing to the journal package of Akadémiai Kiadó: 100%
Subscription fee 2025 Online subsscription: 700 EUR / 768 USD
Print + online subscription: 820 EUR / 900 USD
Subscription Information Online subscribers are entitled access to all back issues published by Akadémiai Kiadó for each title for the duration of the subscription, as well as Online First content for the subscribed content.
Purchase per Title Individual articles are sold on the displayed price.

Acta Oeconomica
Language English
Size B5
Year of
Foundation
1966
Volumes
per Year
1
Issues
per Year
4
Founder Magyar Tudományos Akadémia
Founder's
Address
H-1051 Budapest, Hungary, Széchenyi István tér 9.
Publisher Akadémiai Kiadó
Publisher's
Address
H-1117 Budapest, Hungary 1516 Budapest, PO Box 245.
Responsible
Publisher
Chief Executive Officer, Akadémiai Kiadó
ISSN 0001-6373 (Print)
ISSN 1588-2659 (Online)