The role of financial globalization in the long-run volatility between forex and stock markets during COVID-19: Evidence from Africa
This study examines the long-run volatility between forex and stock markets and the role of financial globalization in this relationship in Africa, during the COVID-19 pandemic period, using panel Fully Modified Ordinary Least Squares (FMOLS) and panel Dynamic Ordinary Least Squares (DOLS) approache...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-12-01
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| Series: | Research in Globalization |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2590051X24000510 |
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| _version_ | 1850121768865366016 |
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| author | Michael Insaidoo William Gabriel Brafu-Insaidoo James Atta Peprah William Godfred Cantah |
| author_facet | Michael Insaidoo William Gabriel Brafu-Insaidoo James Atta Peprah William Godfred Cantah |
| author_sort | Michael Insaidoo |
| collection | DOAJ |
| description | This study examines the long-run volatility between forex and stock markets and the role of financial globalization in this relationship in Africa, during the COVID-19 pandemic period, using panel Fully Modified Ordinary Least Squares (FMOLS) and panel Dynamic Ordinary Least Squares (DOLS) approaches. Our empirical outcomes revealed bi-directional long-run volatility between the two financial markets in the COVID-19 pandemic period. The results further established that, financial globalization reduces forex markets’ volatility effects on stock markets’ volatility, whilst it heightens stock markets’ volatility effects on forex markets’ volatility in Africa, during the COVID-19 pandemic period. The implications of this study, include the need to harness the stabilising potential of financial globalization in the long-run volatility between forex and stock markets, primarily through asset diversification, enhanced information flow, and market efficiency in African financial markets. |
| format | Article |
| id | doaj-art-e46df01fedb34a51a8640abd45d1b877 |
| institution | OA Journals |
| issn | 2590-051X |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Research in Globalization |
| spelling | doaj-art-e46df01fedb34a51a8640abd45d1b8772025-08-20T02:35:00ZengElsevierResearch in Globalization2590-051X2024-12-01910024210.1016/j.resglo.2024.100242The role of financial globalization in the long-run volatility between forex and stock markets during COVID-19: Evidence from AfricaMichael Insaidoo0William Gabriel Brafu-Insaidoo1James Atta Peprah2William Godfred Cantah3Department of Economics and Actuarial Science, Faculty of Accounting and Finance, University of Professional Studies, Accra, Ghana; Corresponding author.Department of Data Science and Economic Policy, School of Economics, University of Cape Coast, GhanaDepartment of Applied Economics, School of Economics, University of Cape Coast, GhanaDepartment of Data Science and Economic Policy, School of Economics, University of Cape Coast, GhanaThis study examines the long-run volatility between forex and stock markets and the role of financial globalization in this relationship in Africa, during the COVID-19 pandemic period, using panel Fully Modified Ordinary Least Squares (FMOLS) and panel Dynamic Ordinary Least Squares (DOLS) approaches. Our empirical outcomes revealed bi-directional long-run volatility between the two financial markets in the COVID-19 pandemic period. The results further established that, financial globalization reduces forex markets’ volatility effects on stock markets’ volatility, whilst it heightens stock markets’ volatility effects on forex markets’ volatility in Africa, during the COVID-19 pandemic period. The implications of this study, include the need to harness the stabilising potential of financial globalization in the long-run volatility between forex and stock markets, primarily through asset diversification, enhanced information flow, and market efficiency in African financial markets.http://www.sciencedirect.com/science/article/pii/S2590051X24000510Stock market volatilityExchange rate volatilityFinancial globalizationCOVID-19Long-run volatility |
| spellingShingle | Michael Insaidoo William Gabriel Brafu-Insaidoo James Atta Peprah William Godfred Cantah The role of financial globalization in the long-run volatility between forex and stock markets during COVID-19: Evidence from Africa Research in Globalization Stock market volatility Exchange rate volatility Financial globalization COVID-19 Long-run volatility |
| title | The role of financial globalization in the long-run volatility between forex and stock markets during COVID-19: Evidence from Africa |
| title_full | The role of financial globalization in the long-run volatility between forex and stock markets during COVID-19: Evidence from Africa |
| title_fullStr | The role of financial globalization in the long-run volatility between forex and stock markets during COVID-19: Evidence from Africa |
| title_full_unstemmed | The role of financial globalization in the long-run volatility between forex and stock markets during COVID-19: Evidence from Africa |
| title_short | The role of financial globalization in the long-run volatility between forex and stock markets during COVID-19: Evidence from Africa |
| title_sort | role of financial globalization in the long run volatility between forex and stock markets during covid 19 evidence from africa |
| topic | Stock market volatility Exchange rate volatility Financial globalization COVID-19 Long-run volatility |
| url | http://www.sciencedirect.com/science/article/pii/S2590051X24000510 |
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