Exploring Bubbles in the Digital Economy: The Case of China

Meng Qin, Nawazish Mirza, Chi-Wei Su and Muhammad Umar

Global Finance Journal, 2023, vol. 57, issue C

Abstract: This study identifies the cyclical boom-and-bust episodes in digital economy-related assets and determines whether bubbles exist in China's digital economy. The extant literature mainly focuses on tech or cryptocurrency bubbles and has not considered the digital economy. Therefore, we use data from March 22, 2017, to March 3, 2022, and employ the generalized supremum augmented Dickey–Fuller (GSADF) technique to capture the irrational prosperity in China's digital economy. The conclusion suggests the existence of five bubbles in China's digital economy, all accompanied by extreme fluctuations in related asset prices, which the asset-pricing model supports. Under the backdrop of the scientific and technological revolution and industrial transformation, this exploration offers meaningful suggestions for China to facilitate the sound development of the digital economy.

Keywords: Digital economy; China; Asset bubbles; Generalized SADF; Irrational prosperity (search for similar items in EconPapers)
JEL-codes: C22 E31 O33 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1044028323000662
Full text for ScienceDirect subscribers only

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:eee:glofin:v:57:y:2023:i:c:s1044028323000662

DOI: 10.1016/j.gfj.2023.100871

Access Statistics for this article

Global Finance Journal is currently edited by Manuchehr Shahrokhi

More articles in Global Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().