A development of the financial markets was not homogenous across the SEE region. Bulgaria, Romania and Slovenia, as countries that are already in the EU, had previously experienced strong capital inflows coupled with particularly high asset valuations and buoyant demand conditions due to their announcement of EU accession (see Dvorák and Podpiera 2005). Croatia have also seen strong capital inflows in the last decade connected with the EU membership. Table 1. The stacionarity (Augmented Dickey-Fuller) Bulgaria and Croatia – Variable Level dlog(x) Bulgaria Explanatory variables Capital inflows -1.019668 -8.230745 (0.7445) (0.0000) GDP -1.962436 -10.78868 (0.3031) (0.0000) Interest rate -1.418622 -10.77858 (0.5710) (0.0000) CPI -1.469875 -10.77638 (0.5475) (0.0000) Export -3.510379 -4.777713 (0.0000) (0.0094) Import -1.648416 -6.922105 (0.4546) (0.0000) Croatia Capital inflows -2.253762 -11.3184 (0.1887) (0.0000)
A development of the financial markets was not homogenous across the SEE region. Bulgaria, Romania and Slovenia, as countries that are already in the EU, had previously experienced strong capital inflows coupled with particularly high asset valuations and buoyant demand conditions due to their announcement of EU accession (see Dvorák and Podpiera 2005). Croatia have also seen strong capital inflows in the last decade connected with the EU membership. Table 1. The stacionarity (Augmented Dickey-Fuller) – Bulgaria and Croatia Variable Level dlog(x) Bulgaria Explanatory variables Capital inflows -1.019668 (0.7445) -8.230745 (0.0000) GDP -1.962436 (0.3031) -10.78868 (0.0000) Interest rate -1.418622 (0.5710) -10.77858 (0.0000) CPI -1.469875 (0.5475) -10.77638 (0.0000) Export -3.510379 (0.0094) -4.777713 (0.0000) Import -1.648416 (0.4546) -6.922105 (0.0000) Croatia Capital inflows -2.253762 (0.1887) -11.3184 (0.0000)