Open Access Journal Article

The Impact of RCEP on Dual Circulation and Greater Bay Area — From the Perspective of China’s Stock Market Conditions

by Bin Mo a,* orcid  and  He Nie b orcid
a
Guangzhou Institute of International Finance, Guangzhou University, Guangzhou, China
b
Department of Economics, National University of Singapore, Singapore
*
Author to whom correspondence should be addressed.
EAL  2022 1(2):8; https://doi.org/10.58567/eal01020003
Received: 21 November 2022 / Accepted: 22 December 2022 / Published Online: 28 December 2022
View Full-Text
Download PDF

Abstract

With the daily data from Nov 20, 2019 to Oct 31, 2022, this paper examines the dynamic nonlinear effects of RCEP on Dual Circulation and Greater Bay Area stock market from a quantile perspective. The rolling window quantile regressions detect the positive effects of RCEP on Dual Circulation and Greater Bay Area stock markets with significant time-varying characteristics. Meanwhile, QQ results show that the impacts from RCEP index are more significant under extreme conditions. In addition, we further use a nonparametric QC test to provide evidence on the predictive power of RCEP for Dual Circulation and Greater Bay Area with stock market.

Keywords: RCEP; Dual Circulation; Greater Bay Area; Quantile approach;
Copyright: © 2022 by Mo and Nie. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
Show Figures

Share and Cite

ACS Style
Mo, B.; Nie, H. The Impact of RCEP on Dual Circulation and Greater Bay Area — From the Perspective of China’s Stock Market Conditions. Economic Analysis Letters, 2022, 1, 8. https://doi.org/10.58567/eal01020003
AMA Style
Mo B, Nie H. The Impact of RCEP on Dual Circulation and Greater Bay Area — From the Perspective of China’s Stock Market Conditions. Economic Analysis Letters; 2022, 1(2):8. https://doi.org/10.58567/eal01020003
Chicago/Turabian Style
Mo, Bin; Nie, He 2022. "The Impact of RCEP on Dual Circulation and Greater Bay Area — From the Perspective of China’s Stock Market Conditions" Economic Analysis Letters 1, no.2:8. https://doi.org/10.58567/eal01020003
APA style
Mo, B., & Nie, H. (2022). The Impact of RCEP on Dual Circulation and Greater Bay Area — From the Perspective of China’s Stock Market Conditions. Economic Analysis Letters, 1(2), 8. https://doi.org/10.58567/eal01020003

Article Metrics

Article Access Statistics

References

  1. Cao, G., & Xie, W. (2022). Asymmetric dynamic spillover effect between cryptocurrency and China's financial market: Evidence from TVP-VAR based connectedness approach. Finance Research Letters, 49, 103070. https://doi.org/10.1016/j.frl.2022.103070
  2. Guo, D., & Zhou, P. (2021). The rise of a new anchor currency in RCEP? A tale of three currencies. Economic Modelling, 104, 105647. https://doi.org/10.1016/j.econmod.2021.105647
  3. Guo, N. (2021). Reasons and Measures for the Development of" Double Circulation" in Post-Epidemic Period in China. Frontiers in Economics and Management, 2(2), 218-224. https://doi.org/10.6981/FEM.202102_2(2).0026
  4. Guo, Q., & Gao, R. (2022). Study on the Present Situation, Problems and Countermeasures of Dual Circulation Development in the Guangdong-Hong Kong-Macao Greater Bay Area. Open Journal of Business and Management, 10(4), 2127-2159. https://doi.org/10.4236/ojbm.2022.104108
  5. Hou, Y., Li, S., & Wen, F. (2019). Time-varying volatility spillover between Chinese fuel oil and stock index futures markets based on a DCC-GARCH model with a semi-nonparametric approach. Energy Economics, 83, 119-143. https://doi.org/10.1016/j.eneco.2019.06.020
  6. Jiang, Y., Jiang, C., Nie, H., & Mo, B. (2019). The time-varying linkages between global oil market and China's commodity sectors: Evidence from DCC-GJR-GARCH analyses. Energy, 166, 577-586. https://doi.org/10.1016/j.energy.2018.10.116
  7. Jiang, Y., Tian, G., & Mo, B. (2020). Spillover and quantile linkage between oil price shocks and stock returns: new evidence from G7 countries. Financial Innovation, 6(1), 1-26. https://doi.org/10.1186/s40854-020-00208-y
  8. Jiang, Y., Tian, G., Wu, Y., & Mo, B. (2022). Impacts of geopolitical risks and economic policy uncertainty on Chinese tourism‐listed company stock. International Journal of Finance & Economics, 27(1), 320-333. https://doi.org/10.1002/ijfe.2155
  9. Li, H., Zhou, D., Hu, J., & Guo, L. (2022). Dynamic linkages among oil price, green bond, carbon market and low-carbon footprint company stock price: Evidence from the TVP-VAR model. Energy Reports, 8, 11249-11258. https://doi.org/10.1016/j.egyr.2022.08.230
  10. Meng, J., Nie, H., Mo, B., & Jiang, Y. (2020). Risk spillover effects from global crude oil market to China’s commodity sectors. Energy, 202, 117208. https://doi.org/10.1016/j.energy.2020.117208
  11. Mo, B., Meng, J., & Zheng, L. (2022). Time and frequency dynamics of connectedness between cryptocurrencies and commodity markets. Resources Policy, 77, 102731. https://doi.org/10.1016/j.resourpol.2022.102731
  12. Nusair, S. A., & Olson, D. (2022). Dynamic relationship between exchange rates and stock prices for the G7 countries: A nonlinear ARDL approach. Journal of International Financial Markets, Institutions and Money, 78, 101541. https://doi.org/10.1016/j.intfin.2022.101541
  13. Qiao, X., Zhu, H., Zhang, Z., & Mao, W. (2022). Time-frequency Transmission Mechanism of EPU, Investor Sentiment and Financial Assets: A Multiscale TVP-VAR Connectedness Analysis. The North American Journal of Economics and Finance, 101843. https://doi.org/10.1016/j.najef.2022.101843
  14. Salem, L. B., Nouira, R., Jeguirim, K., & Rault, C. (2022). The determinants of crude oil prices: Evidence from ARDL and nonlinear ARDL approaches. Resources Policy, 103085. https://doi.org/10.1016/j.resourpol.2022.103085
  15. Sim, N., & Zhou, H. (2015). Oil prices, US stock return, and the dependence between their quantiles. Journal of Banking & Finance, 55, 1-8. https://doi.org/10.1016/j.jbankfin.2015.01.013
  16. Wan, G., Wang, X., Zhang, R., & Zhang, X. (2022). The impact of road infrastructure on economic circulation: Market expansion and input cost saving. Economic Modelling, 112, 105854. https://doi.org/10.1016/j.econmod.2022.105854
  17. Wang, Z., Yu, Z., Ma, L., & Li, A. (2022). The Digital Economy and the Energy “Internal Circulation”: Evidence from China’s Interprovincial Energy Trade. Sustainability, 14(23), 15837. https://doi.org/10.3390/su142315837
  18. Wu, J., & Chen, T. (2022). Impact of Digital Economy on Dual Circulation: An Empirical Analysis in China. Sustainability, 14(21), 14466. https://doi.org/10.3390/su142114466
  19. Yifu, L. J., & Wang, X. (2021). Dual circulation: A new structural economics view of development. Journal of Chinese Economic and Business Studies, 1-20. https://doi.org/10.1080/14765284.2021.1929793
  20. Yousaf, I., & Ali, S. (2020). The COVID-19 outbreak and high frequency information transmission between major cryptocurrencies: Evidence from the VAR-DCC-GARCH approach. Borsa Istanbul Review, 20, S1-S10. https://doi.org/10.1016/j.bir.2020.10.003
  21. Yu, G., & Zhou, X. (2021). The influence and countermeasures of digital economy on cultivating new driving force of high-quality economic development in Henan Province under the background of" double circulation". Annals of Operations Research, 1-22. https://doi.org/10.1007/s10479-021-04325-4
  22. Zhang, C., & Chen, P. (2022). Applying the three-stage SBM-DEA model to evaluate energy efficiency and impact factors in RCEP countries. Energy, 241, 122917. https://doi.org/10.1016/j.energy.2021.122917
  23. Zhang, W., Cao, S., Zhang, X., & Qu, X. (2023). COVID-19 and stock market performance: Evidence from the RCEP countries. International Review of Economics & Finance, 83, 717-735. https://doi.org/10.1016/j.iref.2022.10.013