Geopolitical risks, policy uncertainty, financial stress and market volatility spread: Example of developing countries

In this study, the relationship between selected indices and stock markets of developing countries is examined. In this context, February 2003-January 2020 monthly data for Brazil, India, Russia, China, South Korea, South Africa and Turkey, and February 2003-September 2019 monthly data for Mexico were used. The study used causality tests to examine geopolitical risk, policy uncertainty, financial stress and the bidirectional relationship between stock exchange indexes for developing countries. As a result of the study, statistically significant results were obtained. The results of the study are expected to provide guidance to individual investors and policy practitioners.