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 proceedingConference Paper published in Proceedingspeer-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 languageEnglish
Title of host publicationAdvances in Cross-Section Data Methods in Applied Economic Research
Subtitle of host publication2019 International Conference on Applied Economics (ICOAE 2019)
EditorsNicholas Tsounis, Aspasia Vlachvei
Place of PublicationCham, Switzerland
PublisherSpringer, Cham
Chapter35
Pages531-552
Number of pages22
Edition1
ISBN (Electronic)978-3-030-38253-7
ISBN (Print)978-3-030-38252-0
DOIs
Publication statusPublished - 2020
Externally publishedYes
Event2019 International Conference on Applied
Economics
- Milan, Italy
Duration: 4 Jun 20196 Jun 2019
https://i-coae.com/

Publication series

NameSpringer Proceedings in Business and Economics
PublisherSpringer

Conference

Conference2019 International Conference on Applied
Economics
Abbreviated titleICOAE 2019
Country/TerritoryItaly
CityMilan
Period4/06/196/06/19
Internet address

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