Format

Send to

Choose Destination
ScientificWorldJournal. 2013 Apr 9;2013:171868. doi: 10.1155/2013/171868. Print 2013.

Relationships among energy price shocks, stock market, and the macroeconomy: evidence from China.

Author information

1
School of Economics and Management, North China Electric Power University, Beijing, China. ronggang.cong@cec.lu.se

Abstract

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.

PMID:
23690737
PMCID:
PMC3654288
DOI:
10.1155/2013/171868
[Indexed for MEDLINE]
Free PMC Article

Supplemental Content

Full text links

Icon for Hindawi Publishing Corporation Icon for PubMed Central
Loading ...
Support Center