Exploring the Nexus between Political Risk and Financial Risk in the Balkan Countries: A Wavelet-Based NARDL Coherency analysis
The empirical investigation of which risk factor—political or financial—is the optimal driver of country risk in emerging economies in the twenty-first century has grown into a significant and volatile issue in recent decades. This paper investigates the linkages between political risk and financia...
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| Format: | Article |
| Language: | English |
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Alanya Üniversitesi
2022-11-01
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| Series: | Journal of Contemporary Urban Affairs |
| Subjects: | |
| Online Access: | https://ijcua.com/index.php/ijcua/article/view/311 |
| _version_ | 1797421108222230528 |
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| author | Sadat Momoh Shuaibu Dervis Kirikkaleli |
| author_facet | Sadat Momoh Shuaibu Dervis Kirikkaleli |
| author_sort | Sadat Momoh Shuaibu |
| collection | DOAJ |
| description |
The empirical investigation of which risk factor—political or financial—is the optimal driver of country risk in emerging economies in the twenty-first century has grown into a significant and volatile issue in recent decades. This paper investigates the linkages between political risk and financial risk in four Balkan economies (i.e., Greece, Albania, Bulgaria, and Romania) from 1984 Q3 to 2018 Q4, using non-linear autoregressive distributed lag co-integration (NARDL) and wavelet coherence approaches. As a result, findings from the links between political risk and financial risk are being used to provide significant insights into effective urban planning in Balkan cities. The outcomes of the NARDAL analysis indicate that there are short-term and long-term asymmetric links between political risk and financial risk in the Balkan countries except for Romania. The wavelet coherence study also revealed that there is significant vulnerability between political risk and financial risk at different frequencies in the region, also, political risk is a key for predicting financial risk over the selected study period at different frequencies in Albania and Bulgaria.
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| first_indexed | 2024-03-09T07:11:12Z |
| format | Article |
| id | doaj.art-396a5c90bc9949a4becad5db300392c2 |
| institution | Directory Open Access Journal |
| issn | 2475-6164 2475-6156 |
| language | English |
| last_indexed | 2024-03-09T07:11:12Z |
| publishDate | 2022-11-01 |
| publisher | Alanya Üniversitesi |
| record_format | Article |
| series | Journal of Contemporary Urban Affairs |
| spelling | doaj.art-396a5c90bc9949a4becad5db300392c22023-12-03T09:03:42ZengAlanya ÜniversitesiJournal of Contemporary Urban Affairs2475-61642475-61562022-11-016210.25034/ijcua.2022.v6n2-10Exploring the Nexus between Political Risk and Financial Risk in the Balkan Countries: A Wavelet-Based NARDL Coherency analysisSadat Momoh Shuaibu0Dervis Kirikkaleli1Department of Banking and Finance, Faculty of Economics and Administrative Sciences, European University of Lefke, TurkeyDepartment of Banking and Finance, Faculty of Economics and Administrative Sciences, European University of Lefke, Turkey The empirical investigation of which risk factor—political or financial—is the optimal driver of country risk in emerging economies in the twenty-first century has grown into a significant and volatile issue in recent decades. This paper investigates the linkages between political risk and financial risk in four Balkan economies (i.e., Greece, Albania, Bulgaria, and Romania) from 1984 Q3 to 2018 Q4, using non-linear autoregressive distributed lag co-integration (NARDL) and wavelet coherence approaches. As a result, findings from the links between political risk and financial risk are being used to provide significant insights into effective urban planning in Balkan cities. The outcomes of the NARDAL analysis indicate that there are short-term and long-term asymmetric links between political risk and financial risk in the Balkan countries except for Romania. The wavelet coherence study also revealed that there is significant vulnerability between political risk and financial risk at different frequencies in the region, also, political risk is a key for predicting financial risk over the selected study period at different frequencies in Albania and Bulgaria. https://ijcua.com/index.php/ijcua/article/view/311Political riskFinancial riskWavelet analysisNARDL coherency analysisBalkan countriesUrban planning |
| spellingShingle | Sadat Momoh Shuaibu Dervis Kirikkaleli Exploring the Nexus between Political Risk and Financial Risk in the Balkan Countries: A Wavelet-Based NARDL Coherency analysis Journal of Contemporary Urban Affairs Political risk Financial risk Wavelet analysis NARDL coherency analysis Balkan countries Urban planning |
| title | Exploring the Nexus between Political Risk and Financial Risk in the Balkan Countries: A Wavelet-Based NARDL Coherency analysis |
| title_full | Exploring the Nexus between Political Risk and Financial Risk in the Balkan Countries: A Wavelet-Based NARDL Coherency analysis |
| title_fullStr | Exploring the Nexus between Political Risk and Financial Risk in the Balkan Countries: A Wavelet-Based NARDL Coherency analysis |
| title_full_unstemmed | Exploring the Nexus between Political Risk and Financial Risk in the Balkan Countries: A Wavelet-Based NARDL Coherency analysis |
| title_short | Exploring the Nexus between Political Risk and Financial Risk in the Balkan Countries: A Wavelet-Based NARDL Coherency analysis |
| title_sort | exploring the nexus between political risk and financial risk in the balkan countries a wavelet based nardl coherency analysis |
| topic | Political risk Financial risk Wavelet analysis NARDL coherency analysis Balkan countries Urban planning |
| url | https://ijcua.com/index.php/ijcua/article/view/311 |
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