EconPapers    
Economics at your fingertips  
 

Rogue State Behavior and Markets: the Financial Fallout of North Korean Nuclear Tests

Christos Kollias, Stephanos Papadamou () and Psarianos Iacovos
Additional contact information
Psarianos Iacovos: Department of Economics, University of Thessaly, Korai 43 Str. 38333 Volos, Greece

Peace Economics, Peace Science, and Public Policy, 2014, vol. 20, issue 2, 26

Abstract: Financial markets react to major political events. The three nuclear tests conducted by North Korea in 2006, 2009 and 2013 are a sober confirmation of its on-going nuclear weapons program with the concomitant potential security threat this poses for the stability of the greater region. This article examines how nine regional stock exchanges reacted to the three nuclear tests given their important security repercussions. The results, although not uniformed across all countries and markets, revealed a greater adverse effect in the case of the second of the three tests. Given that the first test was announced in advance and the third was conducted in the midst of an on-going military crisis, this finding suggests that following the initial shock an unanticipated event can cause, markets can evaluate and absorb in a more efficient manner the news.

Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1515/peps-2013-0050 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: Rogue State Behavior and Markets: The Financial Fallout of North Korean Nuclear Tests (2012) Downloads
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:bpj:pepspp:v:20:y:2014:i:2:p:26:n:2

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/peps

DOI: 10.1515/peps-2013-0050

Access Statistics for this article

Peace Economics, Peace Science, and Public Policy is currently edited by Raul Caruso

More articles in Peace Economics, Peace Science, and Public Policy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2022-08-19
Handle: RePEc:bpj:pepspp:v:20:y:2014:i:2:p:26:n:2