 The Impact of China-Pak Economic Corridor (CPEC) on Pakistan Stock Exchange (PSX)Muhammad Mudasar Ghafoor, Zahid Hussain and Muhammad Yasir Saeed Journal of Business and Social Review in Emerging Economies, 2020, vol. 6, issue 4, 1323-1333 Abstract: Purpose: The study aims to find out the impact of CPEC project on volatility and growth of Pakistan stock exchange PSX-100. The CPEC is a significant subset and southern corridor of (SREB) which consists of three economic corridors (Rana, 2015). The investment in CPEC projects not only accelerates Pakistan and Chinese economy but also anticipated to have significant effects on Pakistan stock exchange PSX.Design/Methodology/Approach: The methodology of event study proposed by Bremer and Sweeney (1991). The methodology of Cox and Peterson (1994) used to identify the effects of events related to CPEC projects and stock market returns.Findings: The results indicated that the volatility of PSX-100 has low in post CPEC as compared to pre CPEC era showing a positive effect of CPEC on PSX in the form of stable PSX 100 returns in post CPEC announcement era.Implications/Originality/Value: The results of this empirical study provide important implications to overseas investors, corporations and regulators. Keywords: CPEC; Pakistan Stock Exchange; Stock volatility and One Belt One Road. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:src:jbsree:v:6:y:2020:i:4:p:1323-1333 Access Statistics for this article More articles in Journal of Business and Social Review in Emerging Economies from CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan Contact information at EDIRC. |
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