A new look at stock price-exchange rate nexus: Analysis of COVID-19 pandemic waves in advanced and emerging economies
This study takes a new look at the stock price-exchange rate nexus and attempts contributions to the extant studies in a number of intuitive ways. First, we analyze the reverse relationships given the theory-backed two-way causality between the two variables. We reassess the nexus across the First,...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Elsevier
2023-07-01
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| Series: | Scientific African |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2468227623001278 |
| _version_ | 1797802175234048000 |
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| author | Ahmed S. Alimi Idris A. Adediran |
| author_facet | Ahmed S. Alimi Idris A. Adediran |
| author_sort | Ahmed S. Alimi |
| collection | DOAJ |
| description | This study takes a new look at the stock price-exchange rate nexus and attempts contributions to the extant studies in a number of intuitive ways. First, we analyze the reverse relationships given the theory-backed two-way causality between the two variables. We reassess the nexus across the First, Second and Third Waves of the COVID-19 pandemic, as well as comparison between advanced and emerging economies. Third, we adopt a panel modeling approach that simultaneously takes nonstationarity, cross sectional dependence, and asymmetry into account. The data analyses show that the relationship is statistically negative for the two nexuses. The magnitudes were higher during the crisis (the COVID-19 pandemic) although the relationship broke down during the Second Wave as the Delta variant surged. We identify relevant investment and policy implications of the findings. |
| first_indexed | 2024-03-13T05:01:45Z |
| format | Article |
| id | doaj.art-6c3c6396ab8d4ff69a931a3252ef6a89 |
| institution | Directory Open Access Journal |
| issn | 2468-2276 |
| language | English |
| last_indexed | 2024-03-13T05:01:45Z |
| publishDate | 2023-07-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Scientific African |
| spelling | doaj.art-6c3c6396ab8d4ff69a931a3252ef6a892023-06-17T05:19:54ZengElsevierScientific African2468-22762023-07-0120e01671A new look at stock price-exchange rate nexus: Analysis of COVID-19 pandemic waves in advanced and emerging economiesAhmed S. Alimi0Idris A. Adediran1Federal Ministry of Women Affairs, Abuja, NigeriaCentre for Econometrics and Applied Research, Ibadan, Nigeria; Corresponding author.This study takes a new look at the stock price-exchange rate nexus and attempts contributions to the extant studies in a number of intuitive ways. First, we analyze the reverse relationships given the theory-backed two-way causality between the two variables. We reassess the nexus across the First, Second and Third Waves of the COVID-19 pandemic, as well as comparison between advanced and emerging economies. Third, we adopt a panel modeling approach that simultaneously takes nonstationarity, cross sectional dependence, and asymmetry into account. The data analyses show that the relationship is statistically negative for the two nexuses. The magnitudes were higher during the crisis (the COVID-19 pandemic) although the relationship broke down during the Second Wave as the Delta variant surged. We identify relevant investment and policy implications of the findings.http://www.sciencedirect.com/science/article/pii/S2468227623001278C23C51E44G15 |
| spellingShingle | Ahmed S. Alimi Idris A. Adediran A new look at stock price-exchange rate nexus: Analysis of COVID-19 pandemic waves in advanced and emerging economies Scientific African C23 C51 E44 G15 |
| title | A new look at stock price-exchange rate nexus: Analysis of COVID-19 pandemic waves in advanced and emerging economies |
| title_full | A new look at stock price-exchange rate nexus: Analysis of COVID-19 pandemic waves in advanced and emerging economies |
| title_fullStr | A new look at stock price-exchange rate nexus: Analysis of COVID-19 pandemic waves in advanced and emerging economies |
| title_full_unstemmed | A new look at stock price-exchange rate nexus: Analysis of COVID-19 pandemic waves in advanced and emerging economies |
| title_short | A new look at stock price-exchange rate nexus: Analysis of COVID-19 pandemic waves in advanced and emerging economies |
| title_sort | new look at stock price exchange rate nexus analysis of covid 19 pandemic waves in advanced and emerging economies |
| topic | C23 C51 E44 G15 |
| url | http://www.sciencedirect.com/science/article/pii/S2468227623001278 |
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