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The Effects of Macroeconomic Policies on Equity Market Liquidity: Empirical Evidence in Vietnam

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Part of the Studies in Computational Intelligence book series (SCI,volume 809)

Abstract

This research assesses the impact of macroeconomic policies on the equity market liquidity in Vietnam, an attractive market in Southeast Asia. By using four different characteristics to measure equity market liquidity, this study employs a vector autoregressive (VAR) model to evaluate the influences of fiscal and monetary policies on the Vietnamese equity market in the period from January 2002 to December 2016. The findings show that both fiscal and monetary policies have relationships with the equity market liquidity. Based on the results, we recommend that investors and policymakers should make every effort to understand the simultaneous effects of both fiscal and monetary policies on the equity market liquidity rather than considering the effects of those policies separately.

Keywords

  • Monetary policy
  • Fiscal policy
  • Equity market liquidity
  • Vietnam

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Correspondence to Dang Thi Quynh Anh .

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Anh, D.T.Q., Van Hai, L. (2019). The Effects of Macroeconomic Policies on Equity Market Liquidity: Empirical Evidence in Vietnam. In: Kreinovich, V., Thach, N., Trung, N., Van Thanh, D. (eds) Beyond Traditional Probabilistic Methods in Economics. ECONVN 2019. Studies in Computational Intelligence, vol 809. Springer, Cham. https://doi.org/10.1007/978-3-030-04200-4_71

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