Testing the procyclicality of stock market indices in South-eastern European countries in transition, as compared with World Stock Exchange CentresPeša, Anita (Avtor) Festić, Mejra (Mentor) Stock ExchangeSouth-East Europefinancial integrationEU accessionWe tested the hypothesis of procyclicality for economic activity and the stock exchanges of southeastern European countries relative to the main world Stock Exchange Centers, with a particular emphasis on Croatia (as a country preparing for EU accession) in order to demonstrate the dependence of small financial markets on large ones and to investigate the spillover effect, i.e., the degree and pace of integration of 'new' financial markets into larger ones. Our estimates for the southeastern countries individually and together support the hypothesis of an increase in stock exchange indices in the period of transition, due to the opening of the market economy followed by large capital inflows. Our results for Croatia provided us with evidence that EU accession is a trigger for the better financial integration of a candidate country. The observed countries that are already in the EU wing (Bulgaria, Romania and Slovenia) or those in the process of joining (Croatia and Montenegro) were found to be more dependent on the global financial markets and more exposed to adverse co-movements than other transitional southeastern countries (e.g. Bosnia and Herzegovina and Serbia). A. Peša20112012-02-02 19:32:09Doktorska disertacija22013UDK: 336.76COBISS_ID: 20651750NUK URN: URN:SI:UM:DK:WFMKN7XPsl