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Chinese eSports Industry’s Boom and Recession: Evidence From Bubble Detection Framework

Xin Li, Zheng Li, Meng Qin, Weike Zhang and Chi-Wei Su

SAGE Open, 2024, vol. 14, issue 1, 21582440231218110

Abstract: This paper aims to explore whether the development of competitive computer gaming (eSports) industries is sustained in China. In doing so, we apply the Generalized Supremum Augmented Dickey-Fuller (GSADF) method to investigate when the bubbles originated and crashed in the Chinese eSports market from 2014 to 2021. Utilizing the data of the Chinese Electronic Sports Thematic Index (CESI), the empirical outcomes show that the Chinese eSports industry may deviate from its market value and that the industry witnesses bubble behaviors. The latent reasons might be attributed to government policies, economic growth, stock market crises, and venture capital investments. Therefore, to promote the stabilized and sustained development of the eSports industry in China, regulators and authorities should pay attention to the evolution of bubbles. Moreover, maintaining policy consistency and continuity may be beneficial in stabilizing investors’ expectations and reducing speculative investment behaviors. JEL Classification: G10, Z23, Z28.

Keywords: bubble detection; Chinese eSports market; GSADF test (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:14:y:2024:i:1:p:21582440231218110

DOI: 10.1177/21582440231218110

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