EconPapers    
Economics at your fingertips  
 

China's “New normal”: Will China's growth slowdown derail the BRICS stock markets?

Refk Selmi (), Jamal Bouoiyour () and Amal Miftah

International Economics, 2019, issue 159, 121-139

Abstract: After four decades of impressive performance, China's economic expansion has begun to slow. Considering the growing China's integration in global financial markets, we examine the effect of heightened uncertainty surrounding the China's transition to the new growth model on the remaining BRICS (in particular, Brazil, Russia, India and South Africa) stock markets. This analysis is novel in its methodological approach, which is conducted to pinpoint the dynamic spillover effects as alternative to the time and frequency. The impact of China's growth slowdown is found to be heterogeneous across the BRICS stock markets, suggesting that this crisis does not affect return dynamics in these markets in a uniform way. More specifically, South Africa hasn't been rattled as badly as Brazil, Russia and India. The intensity of bilateral trade and investment relationships, the position of market in terms of regulation and securities exchanges, the financial system efficiency and the ability of counter-cyclical policies to cope with the severe downturn have been put forward to explain the heterogeneous responses of BRICS equities.

Keywords: China's growth slowdown; BRICS stock markets; Scale-on-scale analysis (search for similar items in EconPapers)
JEL-codes: F36 G11 G15 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.sciencedirect.com/science/article/pii/S211070171830310X (text/html)

Related works:
Journal Article: China's “New normal”: Will China's growth slowdown derail the BRICS stock markets? (2019) Downloads
Working Paper: China's “New normal”: Will China's growth slowdown derail the BRICS stock markets? (2019) 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:cii:cepiie:2019-q3-159-11

Access Statistics for this article

More articles in International Economics from CEPII research center Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2022-10-05
Handle: RePEc:cii:cepiie:2019-q3-159-11