All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Barış Soybilgen, Huseyin Kaya and Dincer Dedeoglu
''Evaluating the effect of geopolitical risks on the growth rates of emerging countries''
( 2019, Vol. 39 No.1 )
In this study, we analyze the relationship between geopolitical risks and growth using annual panel data from 18 emerging countries for the period from 1986 to 2016. For a robustness check, we use panel data with 5-year intervals. The news-based indices of Caldara and Iacoviello (2018) were used as a proxy for geopolitical risks. Our results show that the effect of geopolitical risks on growth rates is negative and significant. A 10 point increase in the geopolitical risk index causes a 0.2–0.4% decline in the GDP growth rate.
Keywords: Geopolitical Risk, Growth, Emerging Markets, Panel Data.
JEL: O1 - Economic Development: General
O4 - Economic Growth and Aggregate Productivity: General
Manuscript Received : Oct 01 2018 Manuscript Accepted : Mar 28 2019

  This abstract has been downloaded 1029 times                The Full PDF of this paper has been downloaded 152489 times