Demystifying China’s Impacts on the Iron Ore Market: A VECM Approach

Demystifying China’s Impacts on the Iron Ore Market: A VECM Approach

This paper analyzed China’s impacts on the iron ore market using the Vector Error Correction Model (VECM). The significant statistical results indicate that world GDP, China GDP, China’s total Fixed Asset Investment (FAI), real estate investment and FAI on transportation are useful in predicting the...

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Main Authors: Huang, Ying, Lin, Wenyi, Sun, Chenyu
Other Authors: Tan Kong Yam
Format: Final Year Project
Language:English
Published: 2016
Subjects:
DRNTU::Social sciences::Economic development::China
DRNTU::Social sciences::Economic theory::Macroeconomics
Online Access:http://hdl.handle.net/10356/67003
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-670032019-12-10T12:07:33Z Demystifying China’s Impacts on the Iron Ore Market: A VECM Approach Huang, Ying Lin, Wenyi Sun, Chenyu Tan Kong Yam School of Humanities and Social Sciences DRNTU::Social sciences::Economic development::China DRNTU::Social sciences::Economic theory::Macroeconomics This paper analyzed China’s impacts on the iron ore market using the Vector Error Correction Model (VECM). The significant statistical results indicate that world GDP, China GDP, China’s total Fixed Asset Investment (FAI), real estate investment and FAI on transportation are useful in predicting the iron ore price. Additionally, the impulse and response analysis suggests that shocks to China’s real estate investment and FAI have significant and permanent impacts on the iron ore price. In contrast, shocks to other variables have no long-term effects. Lastly, based on the model, we predict that iron ore will rally in the two quarters of 2016. Bachelor of Arts 2016-05-10T07:07:53Z 2016-05-10T07:07:53Z 2016 Final Year Project (FYP) http://hdl.handle.net/10356/67003 en Nanyang Technological University 47 p. application/pdf
institution Nanyang Technological University
building NTU Library
country Singapore
collection DR-NTU
language English
topic DRNTU::Social sciences::Economic development::China
DRNTU::Social sciences::Economic theory::Macroeconomics
spellingShingle DRNTU::Social sciences::Economic development::China
DRNTU::Social sciences::Economic theory::Macroeconomics
Huang, Ying
Lin, Wenyi
Sun, Chenyu
Demystifying China’s Impacts on the Iron Ore Market: A VECM Approach
description This paper analyzed China’s impacts on the iron ore market using the Vector Error Correction Model (VECM). The significant statistical results indicate that world GDP, China GDP, China’s total Fixed Asset Investment (FAI), real estate investment and FAI on transportation are useful in predicting the iron ore price. Additionally, the impulse and response analysis suggests that shocks to China’s real estate investment and FAI have significant and permanent impacts on the iron ore price. In contrast, shocks to other variables have no long-term effects. Lastly, based on the model, we predict that iron ore will rally in the two quarters of 2016.
author2 Tan Kong Yam
author_facet Tan Kong Yam
Huang, Ying
Lin, Wenyi
Sun, Chenyu
format Final Year Project
author Huang, Ying
Lin, Wenyi
Sun, Chenyu
author_sort Huang, Ying
title Demystifying China’s Impacts on the Iron Ore Market: A VECM Approach
title_short Demystifying China’s Impacts on the Iron Ore Market: A VECM Approach
title_full Demystifying China’s Impacts on the Iron Ore Market: A VECM Approach
title_fullStr Demystifying China’s Impacts on the Iron Ore Market: A VECM Approach
title_full_unstemmed Demystifying China’s Impacts on the Iron Ore Market: A VECM Approach
title_sort demystifying china’s impacts on the iron ore market: a vecm approach
publishDate 2016
url http://hdl.handle.net/10356/67003
_version_ 1681043775707676672

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