Dynamic linkage between Macroeconomic Activities and Stock Prices in Fiji

This paper seeks to investigate whether there is any causal relationship between capital stock prices and macroeconomic activities in Fiji. Empirical results show that all the time series data are nonstationary and cointegrated with a single vector. All the explanatory variables have been found to c...

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Main Authors: Puah, Chin-Hong, Jayaraman, T.K
Format: Working Paper
Language:English
Published: Universiti Malaysia Sarawak, (UNIMAS) 2007
Subjects:
Online Access:http://ir.unimas.my/id/eprint/3077/
http://ir.unimas.my/id/eprint/3077/1/Dynamic%20linkage.pdf
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author Puah, Chin-Hong
Jayaraman, T.K
author_facet Puah, Chin-Hong
Jayaraman, T.K
author_sort Puah, Chin-Hong
building UNIMAS Institutional Repository
collection Online Access
description This paper seeks to investigate whether there is any causal relationship between capital stock prices and macroeconomic activities in Fiji. Empirical results show that all the time series data are nonstationary and cointegrated with a single vector. All the explanatory variables have been found to contribute to the long-run equilibrium relationship. The estimation of error-correction model further confirms that stock price index is cointegrated with real economic activities in the long run, and it adjusts rather fast from short-run deviations towards the long-run equilibrium level. Except for interest rate, real output, M2 and exchange rate do Granger cause stock prices in the short-run.
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format Working Paper
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institution Universiti Malaysia Sarawak
institution_category Local University
language English
last_indexed 2025-11-15T06:03:06Z
publishDate 2007
publisher Universiti Malaysia Sarawak, (UNIMAS)
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repository_type Digital Repository
spelling unimas-30772022-01-14T01:12:27Z http://ir.unimas.my/id/eprint/3077/ Dynamic linkage between Macroeconomic Activities and Stock Prices in Fiji Puah, Chin-Hong Jayaraman, T.K AC Collections. Series. Collected works HB Economic Theory HF Commerce This paper seeks to investigate whether there is any causal relationship between capital stock prices and macroeconomic activities in Fiji. Empirical results show that all the time series data are nonstationary and cointegrated with a single vector. All the explanatory variables have been found to contribute to the long-run equilibrium relationship. The estimation of error-correction model further confirms that stock price index is cointegrated with real economic activities in the long run, and it adjusts rather fast from short-run deviations towards the long-run equilibrium level. Except for interest rate, real output, M2 and exchange rate do Granger cause stock prices in the short-run. Universiti Malaysia Sarawak, (UNIMAS) 2007 Working Paper NonPeerReviewed text en http://ir.unimas.my/id/eprint/3077/1/Dynamic%20linkage.pdf Puah, Chin-Hong and Jayaraman, T.K (2007) Dynamic linkage between Macroeconomic Activities and Stock Prices in Fiji. [Working Paper]
spellingShingle AC Collections. Series. Collected works
HB Economic Theory
HF Commerce
Puah, Chin-Hong
Jayaraman, T.K
Dynamic linkage between Macroeconomic Activities and Stock Prices in Fiji
title Dynamic linkage between Macroeconomic Activities and Stock Prices in Fiji
title_full Dynamic linkage between Macroeconomic Activities and Stock Prices in Fiji
title_fullStr Dynamic linkage between Macroeconomic Activities and Stock Prices in Fiji
title_full_unstemmed Dynamic linkage between Macroeconomic Activities and Stock Prices in Fiji
title_short Dynamic linkage between Macroeconomic Activities and Stock Prices in Fiji
title_sort dynamic linkage between macroeconomic activities and stock prices in fiji
topic AC Collections. Series. Collected works
HB Economic Theory
HF Commerce
url http://ir.unimas.my/id/eprint/3077/
http://ir.unimas.my/id/eprint/3077/1/Dynamic%20linkage.pdf