Feedback of Macroeconomic Indicators to Shocks in Second-Tier Stock Market Development and Innovation within Kaleckian Framework: Hong Kong Case Study

Trang Nguyen; Taha Chaiechi; Lynne Eagle; David Low

doi:10.1007/978-3-030-38253-7_35

Feedback of Macroeconomic Indicators to Shocks in Second-Tier Stock Market Development and Innovation within Kaleckian Framework: Hong Kong Case Study

Trang Nguyen, Taha Chaiechi, Lynne Eagle, David Low

Research output: Chapter in Book/Report/Conference proceeding › Conference Paper published in Proceedings › peer-review

1 Citation (Scopus)

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
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	https://doi.org/10.1007/978-3-030-38253-7_35
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
Publisher	Springer

Conference

Conference	2019 International Conference on Applied Economics
Abbreviated title	ICOAE 2019
Country/Territory	Italy
City	Milan
Period	4/06/19 → 6/06/19
Internet address	https://i-coae.com/

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This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1007/978-3-030-38253-7_35

Cite this

Nguyen, T., Chaiechi, T., Eagle, L., & Low, D. (2020). Feedback of Macroeconomic Indicators to Shocks in Second-Tier Stock Market Development and Innovation within Kaleckian Framework: Hong Kong Case Study. In N. Tsounis, & A. Vlachvei (Eds.), Advances in Cross-Section Data Methods in Applied Economic Research: 2019 International Conference on Applied Economics (ICOAE 2019) (1 ed., pp. 531-552). (Springer Proceedings in Business and Economics). Springer, Cham. https://doi.org/10.1007/978-3-030-38253-7_35

Nguyen, Trang ; Chaiechi, Taha ; Eagle, Lynne et al. / Feedback of Macroeconomic Indicators to Shocks in Second-Tier Stock Market Development and Innovation within Kaleckian Framework : Hong Kong Case Study. Advances in Cross-Section Data Methods in Applied Economic Research: 2019 International Conference on Applied Economics (ICOAE 2019). editor / Nicholas Tsounis ; Aspasia Vlachvei. 1. ed. Cham, Switzerland : Springer, Cham, 2020. pp. 531-552 (Springer Proceedings in Business and Economics).

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title = "Feedback of Macroeconomic Indicators to Shocks in Second-Tier Stock Market Development and Innovation within Kaleckian Framework: Hong Kong Case Study",

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{\textquoteright}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.",

keywords = "Second-tier stock market, Innovation, Kaleckian–Post-Keynesian economics, Structural VEC (SVEC) model ·, Impulse response function",

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year = "2020",

doi = "10.1007/978-3-030-38253-7_35",

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booktitle = "Advances in Cross-Section Data Methods in Applied Economic Research",

edition = "1",

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Nguyen, T, Chaiechi, T, Eagle, L & Low, D 2020, Feedback of Macroeconomic Indicators to Shocks in Second-Tier Stock Market Development and Innovation within Kaleckian Framework: Hong Kong Case Study. in N Tsounis & A Vlachvei (eds), Advances in Cross-Section Data Methods in Applied Economic Research: 2019 International Conference on Applied Economics (ICOAE 2019). 1 edn, Springer Proceedings in Business and Economics, Springer, Cham, Cham, Switzerland, pp. 531-552, 2019 International Conference on Applied
Economics, Milan, Italy, 4/06/19. https://doi.org/10.1007/978-3-030-38253-7_35

Feedback of Macroeconomic Indicators to Shocks in Second-Tier Stock Market Development and Innovation within Kaleckian Framework: Hong Kong Case Study. / Nguyen, Trang; Chaiechi, Taha; Eagle, Lynne et al.
Advances in Cross-Section Data Methods in Applied Economic Research: 2019 International Conference on Applied Economics (ICOAE 2019). ed. / Nicholas Tsounis; Aspasia Vlachvei. 1. ed. Cham, Switzerland: Springer, Cham, 2020. p. 531-552 (Springer Proceedings in Business and Economics).

Research output: Chapter in Book/Report/Conference proceeding › Conference Paper published in Proceedings › peer-review

TY - GEN

T1 - Feedback of Macroeconomic Indicators to Shocks in Second-Tier Stock Market Development and Innovation within Kaleckian Framework

T2 - 2019 International Conference on Applied<br/>Economics

AU - Nguyen, Trang

AU - Chaiechi, Taha

AU - Eagle, Lynne

AU - Low, David

PY - 2020

Y1 - 2020

N2 - 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.

AB - 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.

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KW - Kaleckian–Post-Keynesian economics

KW - Structural VEC (SVEC) model ·

KW - Impulse response function

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BT - Advances in Cross-Section Data Methods in Applied Economic Research

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A2 - Vlachvei, Aspasia

PB - Springer, Cham

CY - Cham, Switzerland

Y2 - 4 June 2019 through 6 June 2019

ER -

Nguyen T, Chaiechi T, Eagle L, Low D. Feedback of Macroeconomic Indicators to Shocks in Second-Tier Stock Market Development and Innovation within Kaleckian Framework: Hong Kong Case Study. In Tsounis N, Vlachvei A, editors, Advances in Cross-Section Data Methods in Applied Economic Research: 2019 International Conference on Applied Economics (ICOAE 2019). 1 ed. Cham, Switzerland: Springer, Cham. 2020. p. 531-552. (Springer Proceedings in Business and Economics). doi: 10.1007/978-3-030-38253-7_35

Feedback of Macroeconomic Indicators to Shocks in Second-Tier Stock Market Development and Innovation within Kaleckian Framework: Hong Kong Case Study

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