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The Impact of the Macroeconomic Factors on the Bucharest Stock Exchange during the Latest Crisis

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  • Cristina Balint

Abstract

The purpose of the paper is to observe and analyze how the dynamics of macroeconomic factors impact the evolution of the Bucharest Stock Exchange (BVB) during the latest crisis (Covid-19 pandemic and the Ukrainian war), through the lens of various market stock indices (BET, BetPlus, BET-FI and BET-NG). After the monthly values of both the macroeconomic factors (inflation rate, unemployment rate, RON-EURO exchange rates, industrial production index, average salary, money supply, interest rate and oil price) and Bucharest Stock Exchange indices were collected, during the period January 2020- June 2023, the descriptive statistics was used to describe all the observed data (mean value, standard deviation, minimum/ maximum value). Finally, the multiple regression was used to see exactly how the Romanian stock market indices are influenced by any changes of macroeconomic factors.

Suggested Citation

  • Cristina Balint, 2023. "The Impact of the Macroeconomic Factors on the Bucharest Stock Exchange during the Latest Crisis," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 26(86), pages 54-66, December,.
    • Handle: RePEc:rej:journl:v:26:y:2023:i:86:p:54-66
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    References listed on IDEAS

    as
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    5. Mukherjee, Tarun K & Naka, Atsuyuki, 1995. "Dynamic Relations between Macroeconomic Variables and the Japanese Stock Market: An Application of a Vector Error Correction Model," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 18(2), pages 223-237, Summer.
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    More about this item

    Keywords

    Bucharest Stock Exchange; macroeconomic factors; stock market indices; Ukrainian war; Covid-19 pandemic;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

    Statistics

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