Abstract:

The paper concerns the level of development of selected stock exchanges in the context of spatial dependence. The dependence is considered in geographical space on the one hand and economic space on the other. A taxonomic measure of development was constructed to determine the level of development of the stock exchanges. The synthetic measure was calculated on the basis of seven diagnostic variables that were considered as important determinants of the level. The spatial dependence was identified with the use of the join-count test. The main question is whether the objects analyzed, within framework of each separated class as well as between them are grouped based on the existing spatial dependence in the physical sense or create groups featuring similar economic development. The research includes 45 largest trading floors analyzed in the period of 2004–2018. The data used in the analysis was derived from the World Federation of Exchanges (www.worldexchanges.org). Based on the research we have found that both geographic closeness and the similarity of market capitalization as relation to GDP are important factors in the relationships between the level of development of stock markets.