IMPACT OF STOCK MARKETS ON THE ECONOMY IN THE V4 COUNTRIES

The objectives and common interests of the V4 countries were described in the Visegrad Declaration (1991). One of the objectives was to create favorable conditions for direct cooperation between enterprises, for foreign capital investment, for the development of financial and stock markets. And this is the reason why the countries of V4 were selected for the analysis. The paper could confirm the relationship between the development of stock markets and the economic growth in the V4. Following the admission of the V4 countries to the European Union in 2004, Visegrad Four’s foreign-policy activities increased significantly and the group focused on promoting cooperation and stability in the wider Central European region. The article dealt with the effects of the stock market on the economy in individual countries and discusses the relationship between the GDP, the stock trading volume and the index rate. The goal of this paper is to find if exists the long-term relationship and the shortterm relationship between variables. Why is the mutual dependence of the GDP and income from shares different in the V4 countries?