An Empirical Study on the Relationship between Stock Index and the National Economy: The Case of China
نویسندگان
چکیده
Should the national economy lead the stock market or the other way round? Using co-integration test and Granger causality test, this paper analyzes the relationship between the stock index and the national economy in the case of China. The result of the empirical analysis indicates that there is no co-integration relationship between the stock index and the national economy in China. In addition, there is no Granger causal relationship between stock index yield and the national economy growth rate. With the empirical result, the thesis concludes with a discussion of the possible reasons of the seemingly abnormal relationship between the stock index and the national economy in China.
منابع مشابه
The Empirical Relationship between Fiscal Deficits and Inflation (Case Study: Selected Asian Economies)
Abstract T he relationship between public sector deficits and inflation is one of the important and controversial issues in the academic literature as well as in economic policy field. On the other hand, a major objective of macroeconomic policies is to foster economic growth and to keep inflation on a low level. So keeping the price stability plays an important role in de...
متن کاملThe Effects of Global Economic Crisis on Capital Structure: Empirical Evidence from Tehran Stock Exchange (TSE)
Abstract The global economy faces crisis every so often. In recent years, the financial crisis has affected the global economy; all countries, directly or indirectly, are involved. The purpose of this research is to study the impact of the global economic crisis on the capital structure of listed companies in Tehran Stock Exchange. To test this effect, 87 companies listed in Tehran Stock Excha...
متن کاملEmpirical Seismic Vulnerability and Damage of Bottom Frame Seismic Wall Masonry Structure: A Case Study in Dujiangyan (China) Region
In order to understand the seismic performance and mechanism of bottom frame seismic wall masonry structure (BFSWMS) and its vulnerability in empirical seismic damage, based on the statistical and numerical analysis of the field seismic damage observation data of 2178 Dujiangyan structures in the Wenchuan great earthquake urban of China on May 12, 2008, a non-linear function model between the s...
متن کاملDynamic Cross Hedging Effectiveness between Gold and Stock Market Based on Downside Risk Measures: Evidence from Iran Emerging Capital Market
This paper examines the hedging effectiveness of gold futures for the stock market in minimizing variance and downside risks, including value at risk and expected shortfall using data from the Iran emerging capital market during four different sub-periods from December 2008 to August 2018. We employ dynamic conditional correlation models including VARMA-BGARCH (DCC, ADCC, BEKK, and ABEKK) and c...
متن کاملA Long-term Casual Nexus between Stock Price and Dividends: Empirical Evidence from the Accepted Firms in Tehran Stock Exchange
this world; though all the discussions are focused on the causal relationships in allthe scientific arguments. One of the methods to study the designed causal relationshipsobjectively is Granger causality test. This paper aims to investigate the longtermcausal relationship between the stock price and dividends. The statisticalpopulation includes 180 active companies in Stock Exchange of Tehran ...
متن کامل