The Economics of the Name Change: Long-term Adjustments towards EU/NATO or Short-term Resolution of Political Uncertainty?
Articles
Bojan Srbinoski
University Carlo Cattaneo - LIUC, Italy
https://orcid.org/0000-0003-4815-3762
Klime Poposki
University St. Kliment Ohridski - Bitola, North Macedonia
https://orcid.org/0000-0002-7497-5826
Ksenija Dencic-Mihajlov
University of Nis, Serbia
https://orcid.org/0000-0002-2419-0676
Milica Pavlovic
University of Nis, Serbia
https://orcid.org/0000-0002-3442-4560
Published 2021-05-20
https://doi.org/10.15388/omee.2021.12.49
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Keywords

referendum
stock markets
political uncertainty
event study

How to Cite

Srbinoski, B. (2021) “The Economics of the Name Change: Long-term Adjustments towards EU/NATO or Short-term Resolution of Political Uncertainty?”, Organizations and Markets in Emerging Economies, 12(1), pp. 86–105. doi:10.15388/omee.2021.12.49.
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Vol. 12 No. 1 (2021)

The Economics of the Name Change: Long-term Adjustments towards EU/NATO or Short-term Resolution of Political Uncertainty?

Abstract

North Macedonia and Greece resolved the 27-year country name dispute and removed the main hurdle for North Macedonia to start the accession processes towards the EU and NATO. The paper analyzes the stock market movements around several events related to the name issue resolution to uncover whether Macedonian companies experienced stock price adjustments according to the long-term benefits/costs of joining the EU/NATO. The dynamics of the market reactions suggest that the investors reacted systematically to the short-term political uncertainty created around the referendum rather than to the long-term perspectives of the EU/NATO integration. We integrate the knowledge from the literature which explores stock market reactions to EU enlargement/exit and political elections and provide contributions for researchers and policymakers.

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