CONNECTEDNESS BETWEEN REGIONAL FINANCIAL MARKETS: EVIDENCE FROM COVID-19 AND RUSSIA-UKRAINE CONFLICT

Erik M. Muñoz Henríquez, Francisco A. Gálvez-Gamboa, Elmer Sanchez Davila

Research output: Contribution to journalArticle (Contribution to Journal)peer-review

Abstract

The paper studies the connectedness of seven regional financial markets since 2018 to 2023 through a TVP-VAR model. The time period selected allow us to study the effects of the connectedness before and after international shocks such as the COVID-19 and the Russian-Ukraine war. Results show that these markets are highly connected but results are heterogenous according to the international shock. During the COVID-19 pandemic, the worldwide uncertainty triggered greater interconnectedness; whereas, the war conflict does not have significant implications, but it did increase the sensitivity of regional markets close to the armed conflict. These results are an important tool in risk management and public policy
Original languageEnglish
Pages (from-to)81-92
Number of pages12
JournalJournal of Globalization, Competitiveness, and Governability
Volume18
Issue number1
StatePublished - 5 Jan 2024

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