Abstract
Despite the importance of second-tier stock markets in supporting SMEs (Small and Medium Enterprise) development and innovation, the dynamic impacts of second-tier stock markets development and innovation on macroeconomic indicators remain under-explored. This study aims to bridge the gap both theoretically and empirically. Accordingly, the theoretical model of Kaleckian–Post-Keynesian macroeconomics is extended and an empirical model is specified and estimated for the case of Hong Kong. A Structural Vector Error Correction (SVEC) estimation technique and impulse response function are adopted for empirical analysis. The results determine that Hong Kong’s macroeconomic indicators exhibit small but positive feedback to shocks in the second-tier market development and innovation in the short run. Specifically, various channels of growth including private investment, domestic savings, and productivity growth are found to be responsive to shocks in the second-tier market development indicators. Meanwhile, shocks to innovation indicators effectively induce responses of the following growth channels: private investment, domestic savings, productivity growth, and employment.
Original language | English |
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Title of host publication | Advances in Cross-Section Data Methods in Applied Economic Research |
Subtitle of host publication | 2019 International Conference on Applied Economics (ICOAE 2019) |
Editors | Nicholas Tsounis, Aspasia Vlachvei |
Place of Publication | Cham, Switzerland |
Publisher | Springer, Cham |
Chapter | 35 |
Pages | 531-552 |
Number of pages | 22 |
Edition | 1 |
ISBN (Electronic) | 978-3-030-38253-7 |
ISBN (Print) | 978-3-030-38252-0 |
DOIs | |
Publication status | Published - 2020 |
Externally published | Yes |
Event | 2019 International Conference on Applied Economics - Milan, Italy Duration: 4 Jun 2019 → 6 Jun 2019 https://i-coae.com/ |
Publication series
Name | Springer Proceedings in Business and Economics |
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Publisher | Springer |
Conference
Conference | 2019 International Conference on Applied Economics |
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Abbreviated title | ICOAE 2019 |
Country/Territory | Italy |
City | Milan |
Period | 4/06/19 → 6/06/19 |
Internet address |