Mean and volatility spillover in Asian economies: Evidence from trade war.

This study aims to assess the mean and volatility spillover due to trade war between US and China on the Asian markets using GARCH, evidencing that portfolio opportunity exists for the investors in these markets. These markets may offer diversification benefits to investors who fear the negative ramifications of stock markets of the economies in US and China. The study creates a composite variable to test the impact of trade war. The composition of the variable is based on Bilateral Tariffs, Trade policy and Economic policy uncertainty of US only. It means the study covers the US side only for creating a trade war variable. The findings of the study reveal no mean or volatility spillover exists. The study has implications for investors and policymakers

Descriptive statistics.

This study aims to assess the mean and volatility spillover due to trade war between US and China on the Asian markets using GARCH, evidencing that portfolio opportunity exists for the investors in these markets. These markets may offer diversification benefits to investors who fear the negative ramifications of stock markets of the economies in US and China. The study creates a composite variable to test the impact of trade war. The composition of the variable is based on Bilateral Tariffs, Trade policy and Economic policy uncertainty of US only. It means the study covers the US side only for creating a trade war variable. The findings of the study reveal no mean or volatility spillover exists. The study has implications for investors and policymakers.</div

S1 Appendix -

This study aims to assess the mean and volatility spillover due to trade war between US and China on the Asian markets using GARCH, evidencing that portfolio opportunity exists for the investors in these markets. These markets may offer diversification benefits to investors who fear the negative ramifications of stock markets of the economies in US and China. The study creates a composite variable to test the impact of trade war. The composition of the variable is based on Bilateral Tariffs, Trade policy and Economic policy uncertainty of US only. It means the study covers the US side only for creating a trade war variable. The findings of the study reveal no mean or volatility spillover exists. The study has implications for investors and policymakers.</div

Impact of Financial Deepening on Exchange Rate: Spillover Evidence from Developed and Developing Economies

Financial Deepening essentially refers to improvements in both the volume of money in circulation and the resultant increase in the pool of financial services tailored to all levels of the society. This paper provides a unique edge to existing knowledge by exploring important factor, through which financial deepening leads to financial crises. The excessive financial deepening in the base country spillovers among other economies led to financial instability. In this essence, annually data have been collected from the International Monetary Fund for the period 2000-2016 from 42 countries. Augmented Dicky Fuller, Correlation, VIF,linear regression and ARCH-GARCH family models have been applied in order to analyze and validate the outcomes. At the end recommendations and future research directions have been presented for both developed and developing countries