Analysis of the relationship between innovation, stock market and economic growth in the case of China

Resumen

The objective of this is study is to analyze the behavior and the relationship between the stock market and the macroeconomic developments, based on technology development, through the variables that influence these rates to China, under the hypothesis that a decrease in stock prices may reflect in bad news regarding to technological progress and long-term economic growth. As reference to the innovation question, the study considers The Global Innovation Index (GII) based in China's position note; for the economic growth question, the reference is the Chinese real GDP; and for the capital market question, it is considered the Chinese stock exchange index (SSE Composite). For the analysis and correlation of these variables it was used the calculation of the Pearson's correlation coefficient “r”. The results suggest that the performance of the capital market cannot be an economic indicator for China's case, not presenting evidence that its performance is related to those of the real economy and the technological innovation.