Advertisement

A Comprehensive Macroeconomic Model for Global Investment

  • Ming-Yuan Hsieh
  • You-Shyang Chen
  • Chien-Jung Lai
  • Ya-Ling Wu
Part of the Smart Innovation, Systems and Technologies book series (SIST, volume 10)

Abstract

After the globalization of macroeconomic, the each country economy has the comprehensively inseparable interrelationships. Therefore, in order to fully ascertain the developed pulsation and tendency of the international finances, the global investors need to take vigorous tactics to face the competition for globalization. Financial investment environment changes with each passing day, investors’ satisfaction are more and more discerning, and market demands can fluctuate unpredictably. This research stays focus on the comparison of these industrial regions consisting of ten industrial regions comprised of two developed industrial regions (USA and Japan) and eight high-growth industrial regions (Four Asia Tigers and BRIC). Further, the measurement objectives consists of twenty-four macroeconomic indicators of these above ten industrial regions includes fourteen macroeconomic indicators and ten statistic indexes from four academic institutes comprised of the IMD World Competitiveness Yearbook (WCY), World Economic Forum (WEF), Business Environment Risk Intelligence (BERI), and Economist Intelligence Unit (EIU) that are the focal dimensions of integration investigation in these contexts. Significantly, this research also deals with quantitative and empirical analysis of the prominent features and the essential conditions for portfolio theory and macroeconomic model and to evaluate the relative strengths and weaknesses of twelve stock markets of the ten industrial regions through focusing on the scenario analysis and empirical analysis through the use of the fluctuate percentage of stock price index and stock market capitalization of twelve stock markets.

Keywords

Macroeconomic Model Global Investment 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Markowitz, H.M.: The early history of portfolio theory: 1600-1960. Financial Analysts Journal 55(4), 12–23 (1999)CrossRefGoogle Scholar
  2. 2.
    Sharpe, W.F.: Capital asset prices: A theory of market equilibrium under conditions of risk. Journal of Finance 19(3), 425–442 (1964)MathSciNetCrossRefGoogle Scholar
  3. 3.
    Ross, S.A.: The Capital Asset Pricing Model (CAPM), Short-sale Restrictions and Related Issues. Journal of Finance 32, 177 (1977)CrossRefGoogle Scholar
  4. 4.
    David, B., Calomiris, C.W.: Statement of Charles W. Calomiris Before a joint meeting of the Subcommittee on Housing and Community Opportunity and the Subcommittee on Financial Institutions and Consumer Credit of the Committee on Financial Services. U.S. House of Representatives, 1–34 Google Scholar
  5. 5.
    Hicks, J.R.: The Theory of Uncertainty and Profit. Economica 32, 170–189 (1931)CrossRefGoogle Scholar
  6. 6.
    Hicks, J.R.: Value and Capital. Economic Journal 72, 87–102 (1939)Google Scholar
  7. 7.
    Burmeister, E.W., Kent, D.: The arbitrage pricing theory and macroeconomic factor measures. Financial Review 21(1), 1–20 (1986)CrossRefGoogle Scholar
  8. 8.
    Bautista, R.M.: Macroeconomic Models for East Asian Developing Countries. Asian-Pacific Economic Literature 2(2), 15–25 (1988)MathSciNetCrossRefGoogle Scholar
  9. 9.
    Bautista, C.C.: The PCPS Annual Macroeconomic Model (1993) (manuscript)Google Scholar
  10. 10.
    Challen, D.W., Hagger, A.J.: Macroeconometric Systems: Construction, Validations and Applications. Macmillan Press Ltd, London (1983)Google Scholar
  11. 11.
    Lai, C.-S., et al.: Utilize GRA to Evaluate the Investment Circumstance of the Ten Industrial Regions after the Globally Financial Crisis. The Journal of Grey System 13(4) (2010)Google Scholar
  12. 12.
    Kidane, A., Kocklaeuner, G.: A Macroeconometric Model for Ethiopia: Specification, Estimation, Forecast and Control. Eastern Africa Economic Review 1, 1–12 (1985)Google Scholar
  13. 13.
    Mallick, S.K., Mohsin, M.: On the Effects of Inflation Shocks in a Small Open Economy. Australian Economic Review. The University of Melbourne, Melbourne Institute of Applied Economic and Social Research 40(3), 253–266 (2007)Google Scholar
  14. 14.
    McKinnon, R.: Money and Capital in Economic Development. The Brookings Institution, Washington, D.C (1973)Google Scholar
  15. 15.
    Arestis, P., et al.: Financial globalization: the need for a single currency and a global central bank. Journal of Post Keynesian Economics 27(3), 507–531 (2005)Google Scholar
  16. 16.
    Hsieh, M.-Y., et al.: An Macroeconomic Analysis in Stock Market of the Ten Industrial and Emerging Regions by Utilizing the Portfolio Theory. In: nternational Conference in Business and Information, Kitakyushu, Japan (2010)Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2011

Authors and Affiliations

  • Ming-Yuan Hsieh
    • 1
  • You-Shyang Chen
    • 2
  • Chien-Jung Lai
    • 3
  • Ya-Ling Wu
    • 4
  1. 1.Department of International BusinessNational Taichung University of Education
  2. 2.Department of Information ManagementHwa Hsia Institute of Technology
  3. 3.Department of Distribution ManagementNational Chin-Yi University of Technology
  4. 4.Department of Applied EnglishNational Chin-Yi University of Technology

Personalised recommendations