Since the differennt research purposes,the selection of proper and relevant macroeconomic variales are different.Dritsaki(2005)thinks that selecting macroeconomic variables should focus on those objects which reflect both economic and financial situation of one country. Thus,variables like GDP,CPI , Money Suppley, Exchange Rate,Interest Rate are applyed in this essay, for there are more likely valuable in tracing the relationship betwwen macroeconomic variables and stock market prices based on the special situation in china.
On the long run,the fluctation of stock market prices and the changement of GDP shows a positive relationship,except the year of 2007.As we are known,GDP is a kind of mixed index ,which reflects the strength of a country’s overall macro-economic indicators. When there is a decline in the economic downturn, the majority of the public companies are more likely to reduce their investment and costs ,hence, the stock market’s supply will move slowly;at the same time,due to economic downturn and lower expection and future income, investors, thereby reducing capital expenditure and investment,.Consequentaly,stock prices is bound to fall down. Conversely, when a countryââ‚¬â„¢ GDP grews rapidly, the herald of economic prospects, expectations about the future improvement of business confidence in future development, are keen to enlarge the scale of additional investment and the demand for capital expansion, thus stimulate the stock market and increase its whole value.
Consumer Price Index
Economic Impacts of transnational corporations on industrialised countries
Identify and comment on the economic and environmental impacts of transnational corporations on newly industrialized countries you have studied.
Introduction The object of this report is to assess the economic