Quantitative Measurement of Financial Development in Central and Eastern Europe

In this article, I will first look at the main theoretical approaches financial development and how to quantify it, and in the second part I will measure quantitative financial development in the countries of Central and Eastern Europe for the period 2007-2017. For quantitative measurement, I built an index composed of variables that measure the size and depth of the banking, stock market and insurance markets. In this regard, we used as variables for quantifying financial development in quantitative terms: domestic credit to the private sector by banks, market capitalization and international debt issues, the volume of general insurance premiums, the volume of life insurance premiums, all relative to GDP.