Elections and political risk: New evidence from the 2008 Taiwanese Presidential Election
We examine the effects of party platforms on the economic opportunities of firms using a unique data set from a political prediction market in Taiwan, a country with two dominant parties whose political cleavage derives mainly from a single issue: the "One China Principle". We find that during the 2008 Presidential campaign, the share price of Taiwanese firms with investments in the mainland responded strongly and positively to a positive electoral outlook for the KMT, the party which advocates lifting caps on cross-strait investment in mainland China. The response is strongest for those firms who have already hit their caps.
Year of publication: |
2011
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Authors: | Imai, Masami ; Shelton, Cameron A. |
Published in: |
Journal of Public Economics. - Elsevier, ISSN 0047-2727. - Vol. 95.2011, 7-8, p. 837-849
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Publisher: |
Elsevier |
Subject: | Partisan effects Taiwan |
Saved in:
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