Transmission Mechanism of Stock Price Fluctuation in the Rare Earth Industry Chain

Yanjing Jia, Chao Ding and Zhiliang Dong
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Yanjing Jia: School of Urban Geology and Engineering, Hebei GEO University, Shijiazhuang 050031, China
Chao Ding: School of Management, Hebei GEO University, Shijiazhuang 050031, China
Zhiliang Dong: Strategy and Management Base of Mineral Resources in Hebei Province, Hebei GEO University, Shijiazhuang 050031, China

Sustainability, 2021, vol. 13, issue 22, 1-21

Abstract: The transmission of stock price fluctuations of listed companies in the rare earth industry has complex characteristics. Mastering its transmission law is of great meaning to understand the relationship between the upstream and downstream of the rare earth industry chain and market investment. This article uses the time series of daily closing prices of stocks in the global rare earth industry chain in the past ten years as the research object. The Granger causality test and complex network theory were used to construct the risk transmission network of the industrial chain. We have identified the key stocks in the network of stock price fluctuation in the rare earth industry chain and obtained the transmission path of stock price fluctuation. According to the results: (1) The stocks of Chinese and Japanese listed companies considerably influence the transmission of the stock price fluctuation in the rare earth industry chain. (2) The transmission distance of the stock price fluctuation of each network is relatively small, and the transmission speed is relatively fast. (3) The fluctuation of stock price in the rare earth industry chain is mainly transmitted from the upstream and midstream links to the midstream and downstream links.

Keywords: rare earth; industry chain; complex network; Granger causality test; maximum spanning tree (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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