ABSTRACT
This paper introduces a novel framework of partial connectedness measures to investigate contagion dynamics between different types of oil price shocks and exchange rates. Oil price shocks are persistent net transmitters of shocks within the network. It is found that the oil shock net spillovers made up most of the net connectedness values in most countries during the pre-COVID-19 period. Both oil exporters and oil importers, without any exception, were all net receivers of shocks. However, during the COVID-19 era, there were significant differences within the groups of countries. It is also observed that the oil-risk shock transmits to the other two types of oil shocks in the pre-COVID-19 and during the COVID-19 periods. The results may have potential implications for traders. © 2023 Elsevier B.V.
ABSTRACT
Income inequality is rising due to the risks and uncertainties related to the COVID-19 pandemic and other risks. This paper examines the effects of country risks (measured by economic/financial and political risks) and geopolitical risks on the income inequality in the panel dataset of 19 emerging market economies from 1985 to 2020. It is observed that all risk measures are positively related to income inequality. This evidence is also valid when different empirical models and estimation procedures are considered. The results are also robust for including various controls, excluding the extreme observations in the dataset, and considering the countries at the different income levels and regions.