Spillovers Among the Assets of the Fourth Industrial Revolution and the Role of Climate Uncertainty

Mohammed Alhashim, Nadia Belkhir () and Nader Naifar
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Mohammed Alhashim: Department of Finance, King Saud University, Riyadh 11451, Saudi Arabia
Nadia Belkhir: College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11564, Saudi Arabia
Nader Naifar: College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11564, Saudi Arabia

JRFM, 2025, vol. 18, issue 6, 1-18

Abstract: This research investigates the spillover effects between assets of the Fourth Industrial Revolution (4IR), focusing on the role of climate policy uncertainty in shaping these interactions. Using a time-varying parameter vector autoregressive (TVP-VAR) approach and a joint connectedness method, the analysis incorporates five global indices representing key 4IR domains: the internet, cybersecurity, artificial intelligence and robotics, fintech, and blockchain. The findings reveal significant interdependencies among 4IR assets and evaluate the effect of risk factors, including climate policy uncertainty, as a critical driver of the determinants of returns. The results indicate the growing impact of climate-related risks on the structure of connectedness between 4IR assets, highlighting their implications for portfolio diversification and risk management. These insights are vital for investors and policymakers navigating the intersection of technological innovation and environmental challenges in a rapidly changing global economy.

Keywords: internet; cybersecurity; artificial intelligence and robotics; fintech; blockchain; joint connectedness approach; climate uncertainty (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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