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- Title
New financial markets and their impact on raw material prices.
- Authors
SZTURO, MAREK; WŁODARCZYK, BOGDAN
- Abstract
The purpose of the study was to determine the impact of the Chinese financial market, which is a new market, on the exchange rates of commodity currencies and, thus, the prices of raw materials. For this purpose, an autoregressive distributed lag model (ARDL) was used. The results indicate that the Chinese stock market and futures market for the yuan (the Chinese Yuan Non-Deliverable Forward Transactions; CNY NDF market) had a significant impact on commodity currencies before the global financial crisis in 2008/09, then the effect widened to include more commodity currencies in the post-crisis period. Further evidence suggests that the CNY NDF market had a greater impact on commodity currencies than the Chinese stock market. Despite the significant position of the Chinese economy, research also indicates that the impact of Chinese financial markets on commodity currencies (raw material prices) is weaker than the impact of the US stock market and US dollar market.
- Subjects
CHINA; FINANCIAL markets; RAW material sales &; prices; STOCK exchanges; GLOBAL Financial Crisis, 2008-2009; FUTURES market
- Publication
Annales Universitatis Mariae Curie-Sklodowska, Sectio H: Oeconomia, 2019, Vol 53, Issue 3, p85
- ISSN
0459-9586
- Publication type
Article
- DOI
10.17951/h.2019.53.3.85-92