The reaction of stock price to the world economic policies uncertainty and monetary policies changes in Vietnam

Abstract

This research makes empirical analysis about how Vietnamese stock prices (represented by VN-index) react to the world economic policies uncertainty in general and to Vietnam's monetary changes in particular over the period of 15 years. By applying the Structure Vector Autoregression model (SVAR) with short-term restrictions and monthly data from January, 2008 to June, 2022, the research found that in general, VN-Index responded quickly to the changes in economic conditions globally. Moreover, the study also conducted that the oil price shock is one of the most important determinants that impacts Vietnam’s stock market negatively.