Financial sector and economic growth amid external uncertainty shocks: Insights into emerging economies

The study aims to shed new lights on the lead-lag relationships between the financial sector (RFSI) and economic growth (GDP) in the midst of global economic policy uncertainty (GEPU) shocks for BRICS economies. Hence, the bivariate, partial, and wavelet multiple correlations techniques are employed...

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Autores principales:	Emmanuel Asafo-Adjei, Ebenezer Boateng, Zangina Isshaq, Anthony Adu-Asare Idun, Peterson Owusu Junior, Anokye M. Adam
Formato:	article
Lenguaje:	EN
Publicado:	Public Library of Science (PLoS) 2021
Materias:	Medicine R Science Q
Acceso en línea:	https://doaj.org/article/d2408c378ed94470ac97bc1b24e320f1
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spelling	oai:doaj.org-article:d2408c378ed94470ac97bc1b24e320f12021-11-18T08:14:34ZFinancial sector and economic growth amid external uncertainty shocks: Insights into emerging economies1932-6203https://doaj.org/article/d2408c378ed94470ac97bc1b24e320f12021-01-01T00:00:00Zhttps://www.ncbi.nlm.nih.gov/pmc/articles/PMC8584713/?tool=EBIhttps://doaj.org/toc/1932-6203The study aims to shed new lights on the lead-lag relationships between the financial sector (RFSI) and economic growth (GDP) in the midst of global economic policy uncertainty (GEPU) shocks for BRICS economies. Hence, the bivariate, partial, and wavelet multiple correlations techniques are employed. From the bivariate analysis, we document positive bi-directional causality between the RFSI and economic growth over the sample period. The partial wavelet reveals that GEPU shocks distort the significance and directional comovements between the RFSI and GDP. Moreover, the outcome from the wavelet multiple cross correlations (WMCC) indicates that the RFSI is a first mover at most time scales for the BRICS economies. This is followed by GEPU which either leads or lags for most scales, especially for South Africa. The impact of GEPU on RFSI and GDP is worst for South Africa in about four cases in the medium-, and long-terms. This signifies that South Africa’s financial markets and economic growth are vulnerable to GEPU. However, the impetus for GEPU to drive the comovements between the financial sector and economic activity was less pronounced in the pre-COVID analysis conducted with the WMCC. The study supports both the supply-leading and demand-following hypotheses. Our findings also underscore the need for policymakers, investors and academics alike to incessantly observe the dynamics between finance and growth across time and periodicity while considering adverse shocks from global economic policy uncertainty in tandem.Emmanuel Asafo-AdjeiEbenezer BoatengZangina IsshaqAnthony Adu-Asare IdunPeterson Owusu JuniorAnokye M. AdamPublic Library of Science (PLoS)articleMedicineRScienceQENPLoS ONE, Vol 16, Iss 11 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Medicine R Science Q
spellingShingle	Medicine R Science Q Emmanuel Asafo-Adjei Ebenezer Boateng Zangina Isshaq Anthony Adu-Asare Idun Peterson Owusu Junior Anokye M. Adam Financial sector and economic growth amid external uncertainty shocks: Insights into emerging economies
description	The study aims to shed new lights on the lead-lag relationships between the financial sector (RFSI) and economic growth (GDP) in the midst of global economic policy uncertainty (GEPU) shocks for BRICS economies. Hence, the bivariate, partial, and wavelet multiple correlations techniques are employed. From the bivariate analysis, we document positive bi-directional causality between the RFSI and economic growth over the sample period. The partial wavelet reveals that GEPU shocks distort the significance and directional comovements between the RFSI and GDP. Moreover, the outcome from the wavelet multiple cross correlations (WMCC) indicates that the RFSI is a first mover at most time scales for the BRICS economies. This is followed by GEPU which either leads or lags for most scales, especially for South Africa. The impact of GEPU on RFSI and GDP is worst for South Africa in about four cases in the medium-, and long-terms. This signifies that South Africa’s financial markets and economic growth are vulnerable to GEPU. However, the impetus for GEPU to drive the comovements between the financial sector and economic activity was less pronounced in the pre-COVID analysis conducted with the WMCC. The study supports both the supply-leading and demand-following hypotheses. Our findings also underscore the need for policymakers, investors and academics alike to incessantly observe the dynamics between finance and growth across time and periodicity while considering adverse shocks from global economic policy uncertainty in tandem.
format	article
author	Emmanuel Asafo-Adjei Ebenezer Boateng Zangina Isshaq Anthony Adu-Asare Idun Peterson Owusu Junior Anokye M. Adam
author_facet	Emmanuel Asafo-Adjei Ebenezer Boateng Zangina Isshaq Anthony Adu-Asare Idun Peterson Owusu Junior Anokye M. Adam
author_sort	Emmanuel Asafo-Adjei
title	Financial sector and economic growth amid external uncertainty shocks: Insights into emerging economies
title_short	Financial sector and economic growth amid external uncertainty shocks: Insights into emerging economies
title_full	Financial sector and economic growth amid external uncertainty shocks: Insights into emerging economies
title_fullStr	Financial sector and economic growth amid external uncertainty shocks: Insights into emerging economies
title_full_unstemmed	Financial sector and economic growth amid external uncertainty shocks: Insights into emerging economies
title_sort	financial sector and economic growth amid external uncertainty shocks: insights into emerging economies
publisher	Public Library of Science (PLoS)
publishDate	2021
url	https://doaj.org/article/d2408c378ed94470ac97bc1b24e320f1
work_keys_str_mv	AT emmanuelasafoadjei financialsectorandeconomicgrowthamidexternaluncertaintyshocksinsightsintoemergingeconomies AT ebenezerboateng financialsectorandeconomicgrowthamidexternaluncertaintyshocksinsightsintoemergingeconomies AT zanginaisshaq financialsectorandeconomicgrowthamidexternaluncertaintyshocksinsightsintoemergingeconomies AT anthonyaduasareidun financialsectorandeconomicgrowthamidexternaluncertaintyshocksinsightsintoemergingeconomies AT petersonowusujunior financialsectorandeconomicgrowthamidexternaluncertaintyshocksinsightsintoemergingeconomies AT anokyemadam financialsectorandeconomicgrowthamidexternaluncertaintyshocksinsightsintoemergingeconomies
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Financial sector and economic growth amid external uncertainty shocks: Insights into emerging economies

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