Volatility Spillovers Between BRIC © CC BY 4.0 and South African Stock Markets: Evidence from the COVID‑19 and Russia‑Ukraine Crises

The aim of this study was to assess how global crises influenced volatility spillovers between BRIC and South African stock markets. In conducting the study, the methods employed are the generalized autoregressive conditional heteroskedasticity (GARCH) framework and the time-varying parameter vector...

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Main Authors: Lorraine Muguto, Amy Moodley, Santhiran Pillay, Mcabangomuhle Zulu, Nonkululeko Vilakazi, Hilary Tinotenda Muguto, Paul Francois Muzindutsi
Format: Article
Language:English
Published: Financial University 2025-06-01
Series:Review of Business and Economics Studies
Subjects:
Online Access:https://rbes.fa.ru/jour/article/view/822/270
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author Lorraine Muguto
Amy Moodley
Santhiran Pillay
Mcabangomuhle Zulu
Nonkululeko Vilakazi
Hilary Tinotenda Muguto
Paul Francois Muzindutsi
author_facet Lorraine Muguto
Amy Moodley
Santhiran Pillay
Mcabangomuhle Zulu
Nonkululeko Vilakazi
Hilary Tinotenda Muguto
Paul Francois Muzindutsi
author_sort Lorraine Muguto
collection DOAJ
description The aim of this study was to assess how global crises influenced volatility spillovers between BRIC and South African stock markets. In conducting the study, the methods employed are the generalized autoregressive conditional heteroskedasticity (GARCH) framework and the time-varying parameter vector autoregressive (TVP-VAR) Diebold-Yilmaz approach, based on a sample period segmented into pre-crisis, COVID-19, and Russia-Ukraine conflict phases. The study results revealed that volatility spillovers intensified during the COVID-19 pandemic due to economic disruptions and uncertainty. At the same time, the Russia-Ukraine conflict saw reduced spillovers due to geopolitical isolation and risk aversion. South Africa consistently emerged as a key volatility transmitter, particularly during crises. The study concludes that different global crises have distinct impacts on volatility transmission and should, therefore, be treated distinctly. The key contribution lies in enhancing the understanding of crisis-driven market integration, providing valuable insights for risk management and policy-making in interconnected financial systems.
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institution Kabale University
issn 2308-944X
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language English
publishDate 2025-06-01
publisher Financial University
record_format Article
series Review of Business and Economics Studies
spelling doaj-art-e29c9dfb0f234e42886e1fa779a1958a2025-08-20T03:35:24ZengFinancial UniversityReview of Business and Economics Studies2308-944X2311-02792025-06-01132406010.26794/2308-944X-2025-13-2-40-60Volatility Spillovers Between BRIC © CC BY 4.0 and South African Stock Markets: Evidence from the COVID‑19 and Russia‑Ukraine CrisesLorraine Muguto0https://orcid.org/0000-0003-0397-9763Amy Moodley1Santhiran Pillay2Mcabangomuhle Zulu3Nonkululeko Vilakazi4Hilary Tinotenda Muguto5https://orcid.org/0000-0003-2367-3980Paul Francois Muzindutsi6https://orcid.org/0000-0002-4819-8218University of KwaZulu-NataUniversity of KwaZulu-NataUniversity of KwaZulu-NataUniversity of KwaZulu-NatalUniversity of KwaZulu-NatalUniversity of KwaZulu-NataUniversity of KwaZulu-NatalThe aim of this study was to assess how global crises influenced volatility spillovers between BRIC and South African stock markets. In conducting the study, the methods employed are the generalized autoregressive conditional heteroskedasticity (GARCH) framework and the time-varying parameter vector autoregressive (TVP-VAR) Diebold-Yilmaz approach, based on a sample period segmented into pre-crisis, COVID-19, and Russia-Ukraine conflict phases. The study results revealed that volatility spillovers intensified during the COVID-19 pandemic due to economic disruptions and uncertainty. At the same time, the Russia-Ukraine conflict saw reduced spillovers due to geopolitical isolation and risk aversion. South Africa consistently emerged as a key volatility transmitter, particularly during crises. The study concludes that different global crises have distinct impacts on volatility transmission and should, therefore, be treated distinctly. The key contribution lies in enhancing the understanding of crisis-driven market integration, providing valuable insights for risk management and policy-making in interconnected financial systems.https://rbes.fa.ru/jour/article/view/822/270volatility spilloversstock marketbricsdiebold-yilmazcovid-19russia-ukraine conflict
spellingShingle Lorraine Muguto
Amy Moodley
Santhiran Pillay
Mcabangomuhle Zulu
Nonkululeko Vilakazi
Hilary Tinotenda Muguto
Paul Francois Muzindutsi
Volatility Spillovers Between BRIC © CC BY 4.0 and South African Stock Markets: Evidence from the COVID‑19 and Russia‑Ukraine Crises
Review of Business and Economics Studies
volatility spillovers
stock market
brics
diebold-yilmaz
covid-19
russia-ukraine conflict
title Volatility Spillovers Between BRIC © CC BY 4.0 and South African Stock Markets: Evidence from the COVID‑19 and Russia‑Ukraine Crises
title_full Volatility Spillovers Between BRIC © CC BY 4.0 and South African Stock Markets: Evidence from the COVID‑19 and Russia‑Ukraine Crises
title_fullStr Volatility Spillovers Between BRIC © CC BY 4.0 and South African Stock Markets: Evidence from the COVID‑19 and Russia‑Ukraine Crises
title_full_unstemmed Volatility Spillovers Between BRIC © CC BY 4.0 and South African Stock Markets: Evidence from the COVID‑19 and Russia‑Ukraine Crises
title_short Volatility Spillovers Between BRIC © CC BY 4.0 and South African Stock Markets: Evidence from the COVID‑19 and Russia‑Ukraine Crises
title_sort volatility spillovers between bric c cc by 4 0 and south african stock markets evidence from the covid 19 and russia ukraine crises
topic volatility spillovers
stock market
brics
diebold-yilmaz
covid-19
russia-ukraine conflict
url https://rbes.fa.ru/jour/article/view/822/270
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