Comparison of Macroeconomic Factors Explanatory Power Between Chinese and Swedish Stock Market
In order to seek the difference between Chinese and Swedish stock market, this thesis makes a comparison of explanatory power of macroeconomic factors between the stock markets in respective country. The vector autoregressive (VAR) models are implemented to analyze the relationship among the market returns and macroeconomic variables, i.e., GDP, CPI, exchange rate, unemployment rate and interbank