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Relationships among Energy Price Shocks, Stock Market, and the Macroeconomy: Evidence from China
Joint Authors
Cong, Rong-Gang
Shen, Shaochuan
Source
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-9, 9 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-04-09
Country of Publication
Egypt
No. of Pages
9
Main Subjects
Medicine
Information Technology and Computer Science
Abstract EN
This paper investigates the interactive relationships among China energy price shocks, stock market, and the macroeconomy using multivariate vector autoregression.
The results indicate that there is a long cointegration among them.
A 1% rise in the energy price index can depress the stock market index by 0.54% and the industrial value-adding growth by 0.037%.
Energy price shocks also cause inflation and have a 5-month lag effect on stock market, which may result in the stock market “underreacting.” The energy price can explain stock market fluctuations better than the interest rate over a longer time period.
Consequently, investors should pay greater attention to the long-term effect of energy on the stock market.
American Psychological Association (APA)
Cong, Rong-Gang& Shen, Shaochuan. 2013. Relationships among Energy Price Shocks, Stock Market, and the Macroeconomy: Evidence from China. The Scientific World Journal،Vol. 2013, no. 2013, pp.1-9.
https://search.emarefa.net/detail/BIM-1032613
Modern Language Association (MLA)
Cong, Rong-Gang& Shen, Shaochuan. Relationships among Energy Price Shocks, Stock Market, and the Macroeconomy: Evidence from China. The Scientific World Journal No. 2013 (2013), pp.1-9.
https://search.emarefa.net/detail/BIM-1032613
American Medical Association (AMA)
Cong, Rong-Gang& Shen, Shaochuan. Relationships among Energy Price Shocks, Stock Market, and the Macroeconomy: Evidence from China. The Scientific World Journal. 2013. Vol. 2013, no. 2013, pp.1-9.
https://search.emarefa.net/detail/BIM-1032613
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1032613