The Effects of Financial and Political Risks on Economic Risk in Southern European Countries: A Dynamic Panel Analysis

Dervis Kirikkaleli and Kelvin Onyibor

International Journal of Financial Research, 2020, vol. 11, issue 1, 381-393

Abstract: In this study, we investigate the effects of financial and political risks on the economic risk in Southern European countries. Quarterly data were employed, covering the period from 2000/Q1 to 2015/Q4. We performed the Pedroni Cointegration, Westerlund Cointegration, Common Correlated Estimated Mean Group (CCEMG), and Dynamic Common Correlated Estimated Mean Group technique (dynamic CCEMG). Our empirical findings suggest that (i) an improved financial environment is associated with less economic risk in the Southern European countries; (ii) political risk is harmful to economic stability.

Keywords: Southern European countries; economic risk; financial risk; political risk; dynamic CCEMG (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:11:y:2020:i:1:p:381-393

DOI: 10.5430/ijfr.v11n1p381

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