The causal nexus between bank indices and geopolitical risk: bootstrap causality analysis under horizontal sector dependence
Küçük Resim Yok
Tarih
2023
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Springer India
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
As the global economy thrives and pushes for sustainable growth, there are also a plethora of non-economic challenges arising from the respective dimensions of insecurity and geopolitical tensions such as inter- and intra-country conflicts. Geopolitical risk mostly arises from security tensions, war, and terrorist incidents, which hamper peaceful inter-country and regional cooperation, thus endangering state institutions such as financial institutions. Given this observation, the current study examines the relationship between the geopolitical risk index and bank indices by employing the bootstrap panel causality approach over a monthly period from September 2003 to December 2018. In this case, the causality analysis of the geopolitical risk index and bank indices for six (6) countries (China, Indonesia, Israel, Philippines, Saudi Arabia, and Turkey) was performed. Importantly, the investigation found causality only from the geopolitical risk index to bank indices in Turkey and Israel. Given the statistical evidence from the study, we offer related policy recommendations, especially for the examined countries.
Açıklama
Anahtar Kelimeler
Geopolitical risks, Bank indices, Bootstrap panel causality, Developing economies
Kaynak
Journal of Social And Economic Development
WoS Q Değeri
Q3
Scopus Q Değeri
Cilt
25
Sayı
2
