Chapter 2 Linkages between Stock Market Fluctuations and Business Cycles in Asia

Bertrand Candelon and Norbert Metiu

A chapter in The Evolving Role of Asia in Global Finance, 2011, pp 23-51 from Emerald Group Publishing Limited

Abstract: This chapter sheds new light on the linkages between stock market fluctuations and business cycles in Asia. It shows that at cyclical frequencies stock markets lead business cycles by six months on average. China, Korea, and Taiwan constitute exceptions, as their real and stock market cycles are contemporaneously synchronized. The low level of maturity of these markets offers a potential explanation of this outcome. Furthermore, we find that the linkage also holds during phases of cyclical upswing and downturn, with the exception of China, where the financial market lags behind industrial production during expansions. Finally, for most of the countries (except Thailand and Malaysia), the linkage is also robust to the presence of financial crises.

Keywords: Business cycles; economic integration; financial cycles; synchronization (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... 8715(2011)0000009007
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

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:eme:fegzzz:s1574-8715(2011)0000009007

DOI: 10.1108/S1574-8715(2011)0000009007

Access Statistics for this chapter

More chapters in Frontiers of Economics and Globalization from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().