The impact of global financial transformations on the economic security of Central and Eastern European countries

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Global financial transformations provoke shifts in financial systems that can threaten countries’ economic security. Further integration of the CEE states to the global economy will be accompanied by the increasing dependence of their financial markets and economic security on global financial challenges. The study aims to identify the relationship between global and regional financial trends that shape CEE countries’ economic security and reveal the shifts in the CEE region’s economic security under the influence of global financial transformation. The global financial transformations are the object of the study. Comparative analysis of the dynamics of financial transformations in the world and the CEE countries is made using structural analysis and methods of economic and mathematical modeling of trends. Given the heterogeneity of the CEE states’ financial development, global financial transformations have different manifestations in these countries. The relationship between global and regional indicators of financial transformation proved to be ambiguous. The regional dynamics of stock market capitalization, debt securities, and external debt fit corresponding world indicators’ dynamics. The indicators of global and regional official reserves and bank assets are moving in different directions. The region’s economic security challenges are great volatility of stock market capitalization, growth of external debt burden, and uneven distribution of official reserves. The obtained results should be considered when identifying financial threats affecting the CEE countries’ security and developing relevant policies for shaping the region’s efficient financial system.

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    • Figure 1. Financial depth of the global and CEE economies in 2007–2018
    • Figure 2. Dynamics of growth rates of global and regional financial indicators for approximate data
    • Table 1. CEE countries’ positions in the global financial system in 2007 and 2018, %
    • Table 2. Structure of financial assets of the world and the CEE countries in 2007–2018, %
    • Table 3. External debt to GDP ratio in selected developed economies and CEE countries, 2007–2018, %
    • Table 4. Trend models of global and regional financial indicators
    • Conceptualization
      Olena Bulatova, Tetyana Marena, Yurii Chentukov
    • Investigation
      Olena Bulatova, Tetyana Marena, Yurii Chentukov, Tetiana Shabelnyk
    • Methodology
      Olena Bulatova, Tetiana Shabelnyk
    • Project administration
      Olena Bulatova, Yurii Chentukov
    • Supervision
      Olena Bulatova
    • Writing – review & editing
      Olena Bulatova, Yurii Chentukov
    • Data curation
      Tetyana Marena, Tetiana Shabelnyk
    • Formal Analysis
      Tetyana Marena, Tetiana Shabelnyk
    • Visualization
      Tetyana Marena, Tetiana Shabelnyk
    • Writing – original draft
      Tetyana Marena, Yurii Chentukov
    • Validation
      Yurii Chentukov, Tetiana Shabelnyk