Influencia de la incertidumbre de política económica en las cotizaciones de la Bolsa de Valores de Panamá

  1. Sánchez Gabarre, Mary Elena 1
  2. Castellanos García, Pablo 1
  3. Herrera Ballesteros, Víctor Hugo 2
  1. 1 Universidad de La Coruña 
  2. 2 Universidad De Panama
    info

    Universidad De Panama

    Panamá, Panamá

    ROR https://ror.org/0070j0q91

Journal:
International Review of Economic Policy: Revista Internacional de Política Económica

ISSN: 2695-7035

Year of publication: 2023

Volume: 5

Issue: 1

Pages: 72-88

Type: Article

DOI: 10.7203/IREP.5.1.26979 DIALNET GOOGLE SCHOLAR lock_openOpen access editor

More publications in: International Review of Economic Policy: Revista Internacional de Política Económica

Abstract

The main objective of this paper is to study the relationship between the benchmark stock market index in Panama and economic policy uncertainty from both a global and a national perspective. In particular, the aim is to analyse this relationship in a novel way in order to find out to what extent economic policy events affect Panamanian stock market movements, adopting as a starting hypothesis that an increase in uncertainty is associated with a decrease in stock market indices, i.e. that the uncertainty-quotation relationship is inverse. To this end, we consider data from January 1997 to December 2020 on a monthly basis. This study is carried out through the decomposition of the time series, as well as the application of the GARCH methodology, since it is the one that allows us to separate the information produced by the variations in prices. The results obtained lead us to conclude that the influence of economic policy uncertainty has a negative effect on the stock prices of Panama's benchmark index.

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