EconPapers    
Economics at your fingertips  
 

Rogue State Behavior and Markets: The Financial Fallout of North Korean Nuclear Tests

Christos Kollias and Stephanos Papadamou ()

No 67, Economics of Security Working Paper Series from DIW Berlin, German Institute for Economic Research

Abstract: Financial markets react to major political events. The two nuclear tests conducted by North Korea in 2006 and 2009 were a sober confirmation of the nuclear weapon capacity of this state with the concomitant potential security threat this posed for the stability of the greater region. We examine how ten regional stock exchanges and currency markets reacted to this security development and these two specific events. The results, although not uniform across all countries and markets, revealed a greater adverse effect in the case of the second of the two tests. On the whole, the adverse effects on the stock exchanges were short lived.

Keywords: nuclear tests and financial markets; event studies; GARCH models; quantile regression (search for similar items in EconPapers)
JEL-codes: G1 G14 H56 (search for similar items in EconPapers)
Pages: 27 p.
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.diw.de/documents/publikationen/73/diw_ ... /diw_econsec0067.pdf (application/pdf)

Related works:
Journal Article: Rogue State Behavior and Markets: the Financial Fallout of North Korean Nuclear Tests (2014) 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:diw:diweos:diweos67

Access Statistics for this paper

More papers in Economics of Security Working Paper Series from DIW Berlin, German Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Bibliothek ().

 
Page updated 2022-09-19
Handle: RePEc:diw:diweos:diweos67