The Impact of Geopolitical Risk on Financial Conditions of Emerging Economies

• 영문명: The Impact of Geopolitical Risk on Financial Conditions of Emerging Economies
• 발행기관: 한국유통과학회
• 저자명: Namarta Kumari BAJAJ Tariq AZIZ Sonia KUMARI Marim ALENEZI Naif Mansour MATHKUR
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 10 No.1, 133~143쪽, 전체 11쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2023.01.31

영문 초록

The detrimental impacts of financial instability on the world economy during the financial crisis highlighted the requirement to understand the existing financial circumstances. Stability and developments in financial conditions are important for economic prosperity. This study analyses the impact of geopolitical risk on the economic conditions of some specific emerging economies using monthly data from January 1999 to September 2016 by applying a fixed-effects panel data model. The estimation results demonstrated that geopolitical risk has a significant, negative impact on financial conditions. It shows geopolitical risk could be seen as a key factor that contributes towards financial conditions. Further, it implies that negative shocks of high geopolitical risk experienced by emerging economies are one of the primary reasons for the financial conditions’ deterioration. The findings provide important insights for governments, policymakers, and investors. For instance, governments and politicians should refrain from expressing or producing tension, economic discomfort, or news that is likely to increase a high geopolitical risk. Maintaining a close eye on geopolitical risk and its sources may also help to stabilize financial conditions and develop a well-functioning financial system. As a result, investors would be better informed about an economy’s economic and financial conditions, allowing them to diversify their international portfolios and devise investing strategies during uncertain economic times.

목차

1. Introduction

2. Literature Review

3. Data and Methodology

4. Results and Discussion

5. Conclusion

References

키워드

Geopolitical Risk Financial Conditions Emerging Economies