This paper analyses the impact of trade and financial openness on economic growth in case of some European Union emerging countries using static and dynamic panel data methods. The main findings indicate a positive effect of trade openness on GDP growth while the impact of financial linkages on output synchronization between emerging markets and European Union depends on the state of economy. The impact of financial linkages on output comovements during crises periods is different compared to normal economic states. In the latter case, between regions which know a high degree of financial linkages capital is directed where it is most productive generating output divergence. In opposition, during a crisis period of time, regions which are characterized by increased financial integration, especially through the banking system experience a significant intensification of their economic growth comovement. The impact of trade linkages is more reduced compared with the effect of financial linkages, in both states of the economy. In order to safeguard the benefits of financial and trade integration and to reduce the negative spillovers directed mainly from developed towards emerging economies during financial crisis is of the utmost importance to implement better prudential oversight and policy coordination.
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