The neighborhood effects of provincial-level stock market participation in China

Zhifeng Liu; Tingting Zhang; Wenquan Li; Xiong Kuang

doi:10.1016/j.physa.2018.06.032

The neighborhood effects of provincial-level stock market participation in China

Zhifeng Liu, Tingting Zhang, Wenquan Li, Xiong Kuang

Hainan University

Research output: Contribution to journal › Article › peer-review

6 Citations (Scopus)

Abstract

In this paper, different from the previous studies starting from the micro perspective, we address the key question on the neighborhood effects of provincial-level stock market participation in China. By choosing two different measures of participation behaviors, we have found that there exists provincial imbalance in China. Further, by using the spatial panel data models, we investigate the spatial spillover effect of stock market participation between neighboring provinces, and find that participation behaviors of bordering provinces can affect each other directly and indirectly. We also consider some effects from the explanatory variables and find that, (1) per capita GDP has a significantly positive effect on stock market participation; (2) net population inflow has a significantly negative effect.

Original language	English
Pages (from-to)	459-468
Number of pages	10
Journal	Physica A: Statistical Mechanics and its Applications
Volume	509
DOIs	https://doi.org/10.1016/j.physa.2018.06.032
Publication status	Published - 1 Nov 2018
Externally published	Yes

Keywords

Neighborhood effect
Peer effect
Social interaction
Spatial spillover
Stock market participation

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10.1016/j.physa.2018.06.032

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title = "The neighborhood effects of provincial-level stock market participation in China",

abstract = "In this paper, different from the previous studies starting from the micro perspective, we address the key question on the neighborhood effects of provincial-level stock market participation in China. By choosing two different measures of participation behaviors, we have found that there exists provincial imbalance in China. Further, by using the spatial panel data models, we investigate the spatial spillover effect of stock market participation between neighboring provinces, and find that participation behaviors of bordering provinces can affect each other directly and indirectly. We also consider some effects from the explanatory variables and find that, (1) per capita GDP has a significantly positive effect on stock market participation; (2) net population inflow has a significantly negative effect.",

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AU - Zhang, Tingting

AU - Li, Wenquan

AU - Kuang, Xiong

PY - 2018/11/1

Y1 - 2018/11/1

N2 - In this paper, different from the previous studies starting from the micro perspective, we address the key question on the neighborhood effects of provincial-level stock market participation in China. By choosing two different measures of participation behaviors, we have found that there exists provincial imbalance in China. Further, by using the spatial panel data models, we investigate the spatial spillover effect of stock market participation between neighboring provinces, and find that participation behaviors of bordering provinces can affect each other directly and indirectly. We also consider some effects from the explanatory variables and find that, (1) per capita GDP has a significantly positive effect on stock market participation; (2) net population inflow has a significantly negative effect.

AB - In this paper, different from the previous studies starting from the micro perspective, we address the key question on the neighborhood effects of provincial-level stock market participation in China. By choosing two different measures of participation behaviors, we have found that there exists provincial imbalance in China. Further, by using the spatial panel data models, we investigate the spatial spillover effect of stock market participation between neighboring provinces, and find that participation behaviors of bordering provinces can affect each other directly and indirectly. We also consider some effects from the explanatory variables and find that, (1) per capita GDP has a significantly positive effect on stock market participation; (2) net population inflow has a significantly negative effect.

KW - Neighborhood effect

KW - Peer effect

KW - Social interaction

KW - Spatial spillover

KW - Stock market participation

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VL - 509

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EP - 468

JO - Physica A: Statistical Mechanics and its Applications

JF - Physica A: Statistical Mechanics and its Applications

ER -

The neighborhood effects of provincial-level stock market participation in China

Abstract

Keywords

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