Contemporaneous causality among regional steel price indices of east, south, north, central south, northeast, southwest, and northwest China

Xiaojie Xu () and Yun Zhang ()
Additional contact information
Xiaojie Xu: North Carolina State University
Yun Zhang: North Carolina State University

Mineral Economics, 2024, vol. 37, issue 1, No 1, 14 pages

Abstract: Abstract In this study, we aim at investigating dynamic relations among steel price indices of all seven regional markets in China, spanning the period of 2010M1–2021M4. With daily data, we apply techniques of vector error correction modeling and the directed acyclic graph to analyze the issue of contemporaneous causality among the seven indices, the latter of which is facilitated through the LiNGAM algorithm. We find via vector error correction modeling that each of the seven indices is part of cointegration relations and responses to long-run equilibrium disturbances. We arrive at causal paths via the LiNGAM algorithm for enabling innovation accounting analysis. With this analysis, we find sophisticated dynamics in price adjustment processes following shocks, for which east and northeast regions have the most significant impacts on other regions, followed by south and north regions, followed by the southwest region. Central south and northwest regions are not found to have significant impacts on others. These results suggest that policies on regional steel prices in the long run might be designed with most attention paid to five of the seven regions, particularly east and northeast regions.

Keywords: Steel price index; Vector error correction model; Directed acyclic graph; PC algorithm; Linear non-Gaussian acyclic model (search for similar items in EconPapers)
Date: 2024
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13563-023-00380-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:minecn:v:37:y:2024:i:1:d:10.1007_s13563-023-00380-4

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13563

DOI: 10.1007/s13563-023-00380-4

Access Statistics for this article

Mineral Economics is currently edited by Magnus Ericsson and Patrik Söderholm

More articles in Mineral Economics from Springer, Raw Materials Group (RMG), Luleå University of Technology
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().