Geopolitical risk (GPR) arises from political, economic, or social factors influencing global stability and trade relations. We investigate GPR spillover relationships between 12 countries (G7-BRICS) and their influence on commodities. We find geopolitical stability from 2008 to 2020 and a reduction in global GPR during the Covid-19 pandemic. The Russia-Ukraine conflict has had significant and far-reaching consequences. In this complex geopolitical landscape, the primary impact of GPRs is observed in the interrelations among the BRICS. The US - along with Germany, Russia, and the UK - emerged as the predominant source of spillovers that have led energy prices up.
Geopolitical Risks’ Spillovers Across Countries and on Commodity Markets. A Dynamic Analysis / Tedeschi, Marco; Palomba, Giulio. - ELETTRONICO. - (2023), pp. 1-16. [10.2139/ssrn.4642063]
Geopolitical Risks’ Spillovers Across Countries and on Commodity Markets. A Dynamic Analysis
Tedeschi, Marco
;Palomba, Giulio
2023-01-01
Abstract
Geopolitical risk (GPR) arises from political, economic, or social factors influencing global stability and trade relations. We investigate GPR spillover relationships between 12 countries (G7-BRICS) and their influence on commodities. We find geopolitical stability from 2008 to 2020 and a reduction in global GPR during the Covid-19 pandemic. The Russia-Ukraine conflict has had significant and far-reaching consequences. In this complex geopolitical landscape, the primary impact of GPRs is observed in the interrelations among the BRICS. The US - along with Germany, Russia, and the UK - emerged as the predominant source of spillovers that have led energy prices up.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
