EconPapers    
Economics at your fingertips  
 

Modeling the relationship between military spending and stock market development (a) symmetrically in China: An empirical analysis via the NARDL approach

Assad Ullah, Xinshun Zhao, Muhammad Kamal and JiaJia Zheng

Physica A: Statistical Mechanics and its Applications, 2020, vol. 554, issue C

Abstract: This research article investigates the extent to which military expenditure changes hold an asymmetric impact on stock market development in China, employing the nonlinear Autoregressive Distributed Lag (NARDL) approach. The NARDL results confirm that positive (negative) shocks in military spending have significant positive (negative) impact on stock market development in the long-run. Nonetheless, in the short-run, only the positive shocks in military spending have significant positive relationship with stock market deepening. Based on these outcomes, we conclude that the asymmetry in military expenditure shocks is a long-run rather than short-run phenomenon pertaining to stock market growth in China. The empirical outcomes of this research work give further insights to policymakers and investors.

Keywords: Military spending; Stock market development; Asymmetric cointegration; NARDL; China (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378437119322678
Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000

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:phsmap:v:554:y:2020:i:c:s0378437119322678

DOI: 10.1016/j.physa.2019.124106

Access Statistics for this article

Physica A: Statistical Mechanics and its Applications is currently edited by K. A. Dawson, J. O. Indekeu, H.E. Stanley and C. Tsallis

More articles in Physica A: Statistical Mechanics and its Applications from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-08-22
Handle: RePEc:eee:phsmap:v:554:y:2020:i:c:s0378437119322678