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COVID‐19 crisis and risk spillovers to developing economies: Evidence from Africa
Author(s) -
Akhtaruzzaman Md,
Benkraiem Ramzi,
Boubaker Sabri,
Zopounidis Constantin
Publication year - 2022
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.3634
Subject(s) - downside risk , pandemic , covid-19 , development economics , business , developing country , financial crisis , financial market , economics , financial system , international economics , economic growth , finance , medicine , macroeconomics , portfolio , disease , pathology , infectious disease (medical specialty)
This study provides new evidence on how risk spillovers occur from the United States to developing economies in Africa during the COVID‐19 pandemic. The results show that downside risk exposures of African markets, financial firms and banks particularly increased during Phase I (30 January to 30 April 2020). The nature and magnitude of downside risk exposures of African financial markets were similar to those of the United States. Our results also reveal that the United States is a net transmitter of risk spillovers while Nigeria, South Africa, Egypt and Morocco are net recipients. Our conclusions offer guidance to risk managers, policymakers and investors.