Feedback of Macroeconomic Indicators to Shocks in Second-Tier Stock Market Development and Innovation Within Kaleckian Framework: Hong Kong Case Study

Trang Nguyen (), Taha Chaiechi, Lynne Eagle and David Low
Additional contact information
Trang Nguyen: James Cook University
Taha Chaiechi: James Cook University
Lynne Eagle: James Cook University
David Low: James Cook University

Chapter 35 in Advances in Cross-Section Data Methods in Applied Economic Research, 2020, pp 531-552 from Springer

Abstract: Abstract Despite the importance of second-tier stock markets in supporting SMEs (Small and Medium Enterprise) development and innovation, the dynamic impacts of second-tier stock markets development and innovation on macroeconomic indicators remain under-explored. This study aims to bridge the gap both theoretically and empirically. Accordingly, the theoretical model of Kaleckian–Post-Keynesian macroeconomics is extended and an empirical model is specified and estimated for the case of Hong Kong. A Structural Vector Error Correction (SVEC) estimation technique and impulse response function are adopted for empirical analysis. The results determine that Hong Kong’s macroeconomic indicators exhibit small but positive feedback to shocks in the second-tier market development and innovation in the short run. Specifically, various channels of growth including private investment, domestic savings, and productivity growth are found to be responsive to shocks in the second-tier market development indicators. Meanwhile, shocks to innovation indicators effectively induce responses of the following growth channels: private investment, domestic savings, productivity growth, and employment.

Keywords: Second-tier stock market; Innovation; Kaleckian–Post-Keynesian economics; Structural VEC (SVEC) model; Impulse response function; E62; G32 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-38253-7_35

Ordering information: This item can be ordered from
http://www.springer.com/9783030382537

DOI: 10.1007/978-3-030-38253-7_35

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().