On the Issue of Free Movement of Financial Services and Capital in the Eurasian Economic Union

Authors

  • E.V. Zhiryaeva Russian Presidential Academy of National Economy and Public Administration (North-West Institute of Management of RANEPA) Автор
  • V.N. Naumov Russian Presidential Academy of National Economy and Public Administration (North-West Institute of Management of RANEPA) Автор

DOI:

https://doi.org/10.22394/2073-2929-2022-01-43-56

Keywords:

Regional Economic Integration, common market, financial market, eurasian Economic Union, financial services, capital movement

Abstract

The article examines the macroeconomic indicators of the EAEU countries, used in quantitative methods for assessing financial integration, as well as a number of documents that form the common financial market (CFM) of the EAEU.Aim. To identify the content of the concept of the EAEU CFM, having determined the elements of control of the movement of financial services and capital, to assess the possibilities of its formation, taking into account the achieved integration.Task. To confirm the hypothesis that the insufficiently high existing level of financial integration in the EAEU is the reason why the mechanisms of the EAEU CFM cannot be sufficiently developed.Methods. Correlation analysis, analysis and comparison of texts.Results. Capital mobility is high in Russia and Kyrgyzstan. Converging consumption growth rates is a sign of equalizing financial risks. The countries differ in their exchange rate regimes, two of them maintain a double exchange rate, three have requirements for the repatriation of foreign exchange earnings. Capital flow measures are multidirectional. The CFM assumes the approximation of legislation in the field of financial services. Countries only commit to cross-border supply and consumption abroad for four subsectors, commercial presence is governed by national legislation, and the presence of natural persons is subject to migration regulations. The obligations to liberalize the services market taken to the WTO are not uniform, and the list of exemptions from obligations under the EAEU Treaty is more restrictive than obligations to the WTO. Most of the foreign exchange regulation measures are implemented in accordance with national laws. Investors from member states do not receive national treatment upon establishment.Conclusion. The hypothesis is confirmed. The significance of the work for the theories of financial integration lies in the identification of the forms in which the CFM EAEU exists. The recommendations are intended for use in the work of the Eurasian Economic Commission.

Downloads

Download data is not yet available.

References

Пелипась И. Реальная, номинальная и институциональная конвергенция в странах ЕАЭС// Рабочий материал Исследовательского центра ИПМ. 2017. WP/17/03. URL: http://www.research.by/webroot/delivery/files/wp2017r03.pdf (дата обращения: 24.09.2021).

Backus D., Kehoe P., Kydland F. Dynamics of the Trade Balance and the Terms of Trade: The J-curve? // American Economic Review. 1994. No. 84 (1). P. 84-103.

Baele L., Ferrando A., Hördahl P.Measuring Financial Integration in the Euro Area // European Central Bank Occasional Paper Series. 2004. No. 14.

Balassa B. The Theory of Economic Integration. Irwin: Inc., Homewood, 1961.

Bekaert G., Harvey C. R., Lundblad C. Growth Volatility and Financial Liberalization // Journal of International Money and Finance. 2006. No. 25 (3). P. 370-403.

Borensztein E., Loungani P. Asian Financial Integration: Trends and Interruptions// IMF Working Paper, 2011. WP/11/4. URL: https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Asian-Financial-Integration-Trends-and-Interruptions-24554 (дата обращения: 10.01.2021).

Brouwer G. Monetary and Financial Integration in Asia: Empirical Evidence and Issues // Asia Economic Cooperation and Integration. Manila: Asia Development Bank, 2005.

Eyraud L., Singh D., Sutton B. Benefits of Global and Regional Financial Integration in Latin America// IMF Working Paper. 2017. WP/17/1.Western Hemisphere Department. URL: https://www.imf.org/en/Publications/WP/Issues/2017/01/18/Benefits-of-Global-and-Regional-FinancialIntegration-in-Latin-America-44548 (дата обращения: 10.01.2021).

Feldstein M., Horioka C. Domestic Saving and International Capital Flows // Economic Journal. 1980.

Helliwell J. How Much Do National Borders Matter? Washington, DC: Brookings Institution, 1998.

Imbs J. The Real Effects of Financial Integration // Journal of International Economics. 2006. No. 68 (2). P. 296-324.

Liebscher K., Christl J., Peter Mooslechner P.Financial development, integration and stability: evidence from Central, Eastern and South-Eastern Europe. Cheltenham: Edward Elgar Publishing, 2006.

Nakagawa J. International Harmonization of Economic Regulation. Oxford University press, 2011. 437 p.

Palankai T., Miklos G. Integration Profiles for Central Europe and Hungary // Integration Indicator-Based Monitoring of Regional Economic Integration. Fourth World Report on Regional. United Nations University Series on Regionalism. Springer International Publishing AG, 2017. 360 p.

Romer D. Advanced Macroeconomics.Fourth Edition University of California. Berkeley: Published by McGraw-Hill, 2012. 716 p.

Downloads

Published

2022-01-15

Issue

Section

Articles

How to Cite

Zhiryaeva E., Naumov V. On the Issue of Free Movement of Financial Services and Capital in the Eurasian Economic Union // Eurasian Integration. 2022. no. 1. P. 43–56. https://doi.org/10.22394/2073-2929-2022-01-43-56

Коды статьи

  • EDN QXXVUS
  • Тип статьи (РИНЦ) Научная статья (Научная статья)