Pub Date : 2025-02-18DOI: 10.1016/j.jeca.2025.e00404
Giannis Karagiannis , Panagiotis Ravanos
The family of Malmquist non-parametric productivity indices using either a single constant input or a single constant output is a consistent approach for measuring performance change in terms of composite indicators. In this setting, testing for Hicks-neutral technical change is important, since in its presence the choice among these Malmquist indices is unnecessary, whereas its absence points towards the asymmetric effects of overarching events and policies across the evaluated units. In this paper, we provide an empirical test for Hicks-neutral technical change by relying on recent developments on inference in dynamic nonparametric models of production. We then use it to examine the pattern of technical change in two study cases related to the UNDP Human Development Index and a social inclusion composite indicator. In both cases, country performance change over time is entirely attributed to technical change, which however is economically significant only in the latter case.
{"title":"On the use of Malmquist productivity indices for intertemporal performance assessment by means of composite indicators","authors":"Giannis Karagiannis , Panagiotis Ravanos","doi":"10.1016/j.jeca.2025.e00404","DOIUrl":"10.1016/j.jeca.2025.e00404","url":null,"abstract":"<div><div>The family of Malmquist non-parametric productivity indices using either a single constant input or a single constant output is a consistent approach for measuring performance change in terms of composite indicators. In this setting, testing for Hicks-neutral technical change is important, since in its presence the choice among these Malmquist indices is unnecessary, whereas its absence points towards the asymmetric effects of overarching events and policies across the evaluated units. In this paper, we provide an empirical test for Hicks-neutral technical change by relying on recent developments on inference in dynamic nonparametric models of production. We then use it to examine the pattern of technical change in two study cases related to the UNDP Human Development Index and a social inclusion composite indicator. In both cases, country performance change over time is entirely attributed to technical change, which however is economically significant only in the latter case.</div></div>","PeriodicalId":38259,"journal":{"name":"Journal of Economic Asymmetries","volume":"31 ","pages":"Article e00404"},"PeriodicalIF":0.0,"publicationDate":"2025-02-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143428057","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-06DOI: 10.1016/j.jeca.2025.e00405
Carlos Andrés Zapata Quimbayo , Raúl Alberto Chamorro Narváez
This paper develops and implements a fiscal DSGE model tailored to Colombia, a small and open emerging economy (SOEE). The study focuses on the asymmetric effects of fiscal consolidation strategies in this context. The model, constructed as a New-Keynesian DSGE framework, is estimated using Bayesian techniques with data specific to the Colombian economy and relevant external variables. It includes heterogeneous households (Ricardian and non-Ricardian), domestic producers of final and intermediate goods, importers, exporters, and a national government responsible for fiscal policy and a central bank responsible for monetary policy. Key frictions such as the formation of consumption habits, capital stock utilization, risk-adjusted uncovered interest rate parity, and price and wage rigidities are also included. The results suggest that fiscal multipliers vary significantly depending on the fiscal instrument used, with spending cuts having a more contractionary effect on output than tax increases. Moreover, consolidation measures fall severely on non-Ricardian households, exacerbating income inequality. The model highlights fiscal asymmetries, showing that sectors more dependent on public spending face contractions under fiscal consolidation. These findings provide valuable insights into the dynamics of fiscal and monetary policy in SOEEs and serve as an important tool for policy analysis and economic forecasting in emerging markets such as Colombia.
{"title":"Fiscal asymmetries under a debt consolidation strategy: Evidence from Colombia","authors":"Carlos Andrés Zapata Quimbayo , Raúl Alberto Chamorro Narváez","doi":"10.1016/j.jeca.2025.e00405","DOIUrl":"10.1016/j.jeca.2025.e00405","url":null,"abstract":"<div><div>This paper develops and implements a fiscal DSGE model tailored to Colombia, a small and open emerging economy (SOEE). The study focuses on the asymmetric effects of fiscal consolidation strategies in this context. The model, constructed as a New-Keynesian DSGE framework, is estimated using Bayesian techniques with data specific to the Colombian economy and relevant external variables. It includes heterogeneous households (Ricardian and non-Ricardian), domestic producers of final and intermediate goods, importers, exporters, and a national government responsible for fiscal policy and a central bank responsible for monetary policy. Key frictions such as the formation of consumption habits, capital stock utilization, risk-adjusted uncovered interest rate parity, and price and wage rigidities are also included. The results suggest that fiscal multipliers vary significantly depending on the fiscal instrument used, with spending cuts having a more contractionary effect on output than tax increases. Moreover, consolidation measures fall severely on non-Ricardian households, exacerbating income inequality. The model highlights fiscal asymmetries, showing that sectors more dependent on public spending face contractions under fiscal consolidation. These findings provide valuable insights into the dynamics of fiscal and monetary policy in SOEEs and serve as an important tool for policy analysis and economic forecasting in emerging markets such as Colombia.</div></div>","PeriodicalId":38259,"journal":{"name":"Journal of Economic Asymmetries","volume":"31 ","pages":"Article e00405"},"PeriodicalIF":0.0,"publicationDate":"2025-02-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143264836","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-21DOI: 10.1016/j.jeca.2025.e00403
Renáta Pitoňáková , Rudolf Kucharčík , Ladislav Kabát
The accession to the European Union, several external shocks, and the questionable state interventions in the country's business environment significantly impacted economic development of Slovakia. These phenomena were reflected in both the economic and social situation, namely the level of Gross domestic product (GDP) and rate of unemployment. The goal of our paper is to analyze the possible asymmetries in the unemployment-output relationship according to the Okun's law. We used quarterly data to apply static and dynamic models in their symmetric and asymmetric forms (2009 Q1 – 2023 Q3). The results suggest that the labor market reacts more noticeably to GDP contraction than to GDP expansion. The outcomes are of interest to governing bodies managing labor market policy, primarily in the economic downturn, and for banks in controlling interest rates and inflation.
{"title":"Is the response of the Slovak labor market asymmetric to output changes?","authors":"Renáta Pitoňáková , Rudolf Kucharčík , Ladislav Kabát","doi":"10.1016/j.jeca.2025.e00403","DOIUrl":"10.1016/j.jeca.2025.e00403","url":null,"abstract":"<div><div>The accession to the European Union, several external shocks, and the questionable state interventions in the country's business environment significantly impacted economic development of Slovakia. These phenomena were reflected in both the economic and social situation, namely the level of Gross domestic product (GDP) and rate of unemployment. The goal of our paper is to analyze the possible asymmetries in the unemployment-output relationship according to the Okun's law. We used quarterly data to apply static and dynamic models in their symmetric and asymmetric forms (2009 Q1 – 2023 Q3). The results suggest that the labor market reacts more noticeably to GDP contraction than to GDP expansion. The outcomes are of interest to governing bodies managing labor market policy, primarily in the economic downturn, and for banks in controlling interest rates and inflation.</div></div>","PeriodicalId":38259,"journal":{"name":"Journal of Economic Asymmetries","volume":"31 ","pages":"Article e00403"},"PeriodicalIF":0.0,"publicationDate":"2025-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143649","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-13DOI: 10.1016/j.jeca.2025.e00402
{"title":"Erratum regarding missing Declaration of Competing Interest statements in previously published articles","authors":"","doi":"10.1016/j.jeca.2025.e00402","DOIUrl":"10.1016/j.jeca.2025.e00402","url":null,"abstract":"","PeriodicalId":38259,"journal":{"name":"Journal of Economic Asymmetries","volume":"31 ","pages":"Article e00402"},"PeriodicalIF":0.0,"publicationDate":"2025-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143904576","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-13DOI: 10.1016/j.jeca.2025.e00401
{"title":"Erratum regarding missing Declaration of Competing Interest statements in previously published articles","authors":"","doi":"10.1016/j.jeca.2025.e00401","DOIUrl":"10.1016/j.jeca.2025.e00401","url":null,"abstract":"","PeriodicalId":38259,"journal":{"name":"Journal of Economic Asymmetries","volume":"31 ","pages":"Article e00401"},"PeriodicalIF":0.0,"publicationDate":"2025-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143904423","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-08DOI: 10.1016/j.jeca.2024.e00400
Atrayee Choudhury , Sohini Sahu
In the wake of global climate change, this study tries to reconcile the competing evidence on the fiscal decentralization–environmental sustainability nexus by examining the impact of the regional authority index, a comprehensive index of decentralization, on ecological footprint - a novel and composite indicator of environmental sustainability. Using novel econometric techniques to account for potential asymmetry and endogeneity issues, such as the dynamic panel threshold methodology, and quantile techniques, on a sample of 53 countries over two decades, we find robust evidence that the effect is non-linear and conditional on the degree of fiscal decentralization. Decentralization exerts a favourable impact on ecological footprint in lower regime countries owing to positive externalities, while the adverse impact of the same is observed in higher regime countries due to the “race to the bottom” phenomenon. Furthermore, the mediating channels of political and financial globalization weaken the positive externalities spillover, whereas social and cultural globalization mitigates the “race to the bottom” effect, addressing the on-going debate about the trade-off between globalization and environmental sustainability. The effective mitigation of climate change impacts under sub-national governance is thus conditioned by an optimal mix of decentralization policies at the ground level, backed by global exchange of socio-cultural policies promoting ecological awareness.
{"title":"The asymmetric impact of fiscal decentralization on ecological footprint-accounting for methodological refinements and globalization facets","authors":"Atrayee Choudhury , Sohini Sahu","doi":"10.1016/j.jeca.2024.e00400","DOIUrl":"10.1016/j.jeca.2024.e00400","url":null,"abstract":"<div><div>In the wake of global climate change, this study tries to reconcile the competing evidence on the fiscal decentralization–environmental sustainability nexus by examining the impact of the regional authority index, a comprehensive index of decentralization, on ecological footprint - a novel and composite indicator of environmental sustainability. Using novel econometric techniques to account for potential asymmetry and endogeneity issues, such as the dynamic panel threshold methodology, and quantile techniques, on a sample of 53 countries over two decades, we find robust evidence that the effect is non-linear and conditional on the degree of fiscal decentralization. Decentralization exerts a favourable impact on ecological footprint in lower regime countries owing to positive externalities, while the adverse impact of the same is observed in higher regime countries due to the “race to the bottom” phenomenon. Furthermore, the mediating channels of political and financial globalization weaken the positive externalities spillover, whereas social and cultural globalization mitigates the “race to the bottom” effect, addressing the on-going debate about the trade-off between globalization and environmental sustainability. The effective mitigation of climate change impacts under sub-national governance is thus conditioned by an optimal mix of decentralization policies at the ground level, backed by global exchange of socio-cultural policies promoting ecological awareness.</div></div>","PeriodicalId":38259,"journal":{"name":"Journal of Economic Asymmetries","volume":"31 ","pages":"Article e00400"},"PeriodicalIF":0.0,"publicationDate":"2025-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143648","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-06DOI: 10.1016/j.jeca.2024.e00399
Hassnian Ali , Ahmet Faruk Aysan
This study examines the asymmetric macroeconomic factors influencing the formation and growth of fintech ecosystems across 103 countries from 2005 to 2022, offering both global and regional perspectives. Using a fixed-effects negative binomial regression model as the primary methodology, the research identifies key macroeconomic drivers—such as GDP per capita, inflation, financial development, and real interest rates—whose impacts on fintech formation vary significantly across regions. Additionally, an adapted Asymmetric Error Correction Model (AECM) for count panel data is employed as a supplementary analysis to capture the differential effects of positive and negative changes in macroeconomic variables. The findings reveal how global crises, including the Global Financial Crisis (GFC) and the COVID-19 pandemic, have unevenly disrupted fintech growth, exposing regional vulnerabilities and opportunities. Europe's fintech expansion is primarily driven by investments in education and human capital, while Asia and the Gulf Cooperation Council (GCC) countries are more responsive to macroeconomic stability. In contrast, African fintech ecosystems rely heavily on financial development to foster growth. Robustness checks with lagged variables further validate the temporal effects of these drivers, emphasizing their long-term implications. By exploring the role of macroeconomic asymmetries in shaping fintech ecosystems, this study provides critical insights for policymakers and investors aiming to enhance resilience and foster sustainable growth tailored to the distinct economic environments of each region.
{"title":"Macroeconomic asymmetries and their influence on fintech ecosystem growth: A global and regional perspective","authors":"Hassnian Ali , Ahmet Faruk Aysan","doi":"10.1016/j.jeca.2024.e00399","DOIUrl":"10.1016/j.jeca.2024.e00399","url":null,"abstract":"<div><div>This study examines the asymmetric macroeconomic factors influencing the formation and growth of fintech ecosystems across 103 countries from 2005 to 2022, offering both global and regional perspectives. Using a fixed-effects negative binomial regression model as the primary methodology, the research identifies key macroeconomic drivers—such as GDP per capita, inflation, financial development, and real interest rates—whose impacts on fintech formation vary significantly across regions. Additionally, an adapted Asymmetric Error Correction Model (AECM) for count panel data is employed as a supplementary analysis to capture the differential effects of positive and negative changes in macroeconomic variables. The findings reveal how global crises, including the Global Financial Crisis (GFC) and the COVID-19 pandemic, have unevenly disrupted fintech growth, exposing regional vulnerabilities and opportunities. Europe's fintech expansion is primarily driven by investments in education and human capital, while Asia and the Gulf Cooperation Council (GCC) countries are more responsive to macroeconomic stability. In contrast, African fintech ecosystems rely heavily on financial development to foster growth. Robustness checks with lagged variables further validate the temporal effects of these drivers, emphasizing their long-term implications. By exploring the role of macroeconomic asymmetries in shaping fintech ecosystems, this study provides critical insights for policymakers and investors aiming to enhance resilience and foster sustainable growth tailored to the distinct economic environments of each region.</div></div>","PeriodicalId":38259,"journal":{"name":"Journal of Economic Asymmetries","volume":"31 ","pages":"Article e00399"},"PeriodicalIF":0.0,"publicationDate":"2025-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143644","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-06DOI: 10.1016/j.jeca.2024.e00397
George Alogoskoufis, Stelios Giannoulakis
In this paper we study optimal central bank interest rate policy, and compare it to interest rate rules, such as the Wicksell (1898), Fisher (1919) and Taylor (1993) rules, in an imperfectly competitive DSGE model of aggregate fluctuations. We demonstrate that in versions of the model with full price and wage adjustment, or staggered price-setting, the optimal policy rule is the Fisher rule of absolute inflation stabilization. We also analyze a version of the model with exogenous inflation shocks and asymmetric price adjustment, in which the “divine coincidence” does not apply. In this case, the optimal monetary policy rule takes the form of a Taylor rule, the parameters of which depend on the structural and policy parameters of the model.
{"title":"Alternative monetary policy rules in an imperfectly competitive DSGE model with asymmetric price adjustment","authors":"George Alogoskoufis, Stelios Giannoulakis","doi":"10.1016/j.jeca.2024.e00397","DOIUrl":"10.1016/j.jeca.2024.e00397","url":null,"abstract":"<div><div>In this paper we study optimal central bank interest rate policy, and compare it to interest rate rules, such as the Wicksell (1898), Fisher (1919) and Taylor (1993) rules, in an imperfectly competitive DSGE model of aggregate fluctuations. We demonstrate that in versions of the model with full price and wage adjustment, or staggered price-setting, the optimal policy rule is the Fisher rule of absolute inflation stabilization. We also analyze a version of the model with exogenous inflation shocks and asymmetric price adjustment, in which the “divine coincidence” does not apply. In this case, the optimal monetary policy rule takes the form of a Taylor rule, the parameters of which depend on the structural and policy parameters of the model.</div></div>","PeriodicalId":38259,"journal":{"name":"Journal of Economic Asymmetries","volume":"31 ","pages":"Article e00397"},"PeriodicalIF":0.0,"publicationDate":"2025-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143643","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-04DOI: 10.1016/j.jeca.2024.e00396
Timo Baas
The Corona pandemic affected life and working conditions around the world. Some could work from home, some had to risk their lives at the workplace, and some got laid off. The selection of employees to one of these groups, however, was asymmetric about gender. More than 63 percent of employees providing services in Germany are female; females in health professions account for more than 75 percent, and in social professions, including daycare, the share of female employees is at 84 percent. These occupations were in high demand during the pandemic and cannot be practiced at home. Since women do more than 62 percent of housework and childcare, the high demand for female work creates a dilemma. While family obligations increased as childcare facilities and schools closed, women had to decide whether to remain or drop out of the labor market. In this paper’s estimated DSGE model, these choices are addressed by allowing for asymmetries in participation decisions and disutility of effort for male and female workers. While at the beginning of the pandemic, female employment increased relative to male, an increase in disutility drove females out of the labor market during the second lockdown. Instead, predominantly males entered, and females reacted to this increase by staying absent. This pattern resembles previous findings on historical pandemics and, in the literature, is called “the added worker effect.”
{"title":"The impact of the Covid-19 pandemic on gender labor market asymmetries in Germany","authors":"Timo Baas","doi":"10.1016/j.jeca.2024.e00396","DOIUrl":"10.1016/j.jeca.2024.e00396","url":null,"abstract":"<div><div>The Corona pandemic affected life and working conditions around the world. Some could work from home, some had to risk their lives at the workplace, and some got laid off. The selection of employees to one of these groups, however, was asymmetric about gender. More than 63 percent of employees providing services in Germany are female; females in health professions account for more than 75 percent, and in social professions, including daycare, the share of female employees is at 84 percent. These occupations were in high demand during the pandemic and cannot be practiced at home. Since women do more than 62 percent of housework and childcare, the high demand for female work creates a dilemma. While family obligations increased as childcare facilities and schools closed, women had to decide whether to remain or drop out of the labor market. In this paper’s estimated DSGE model, these choices are addressed by allowing for asymmetries in participation decisions and disutility of effort for male and female workers. While at the beginning of the pandemic, female employment increased relative to male, an increase in disutility drove females out of the labor market during the second lockdown. Instead, predominantly males entered, and females reacted to this increase by staying absent. This pattern resembles previous findings on historical pandemics and, in the literature, is called “the added worker effect.”</div></div>","PeriodicalId":38259,"journal":{"name":"Journal of Economic Asymmetries","volume":"31 ","pages":"Article e00396"},"PeriodicalIF":0.0,"publicationDate":"2025-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143650","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The outbreak of the virus in early 2020 led to widespread market volatility and significant declines in stock prices. The importance of the ASEAN-5 markets has emerged as a result of the pandemic. Post-covid-19 and Russia-Ukraine war, these markets have gained attention from investors and researchers. Therefore, it is crucial to understand the extent to which the ASEAN-5 markets are connected to other major markets in order to fully grasp the impact of the pandemic on global stock markets. Hence, this study aims to examine the connectedness among ASEAN-5, the US, the UK, India, and China's stock markets. The data for the period January 2017 to December 2022 were retrieved. DCC-GARCH is employed to fetch the connectedness for sub-periods: pre, during, and post-covid-19. The results in the pre-covid-19 period highlight that Indian markets are least connected with the others; the Philippines is the worst net volatility receiver. During covid-19, China is the net volatility receiver, in the post-covid-19 period; Singapore is the net volatility receiver. The results are robust to the Minimum Spanning Tree (MST) analysis. During the crisis, investors should rebalance or reallocate their portfolios due to increased connection and declining benefits of diversification. To prevent the local markets from being affected by other markets, policymakers should take action.
{"title":"Exploring global financial interdependencies among ASEAN-5, major developed and developing markets","authors":"Barkha Dhingra , Mohit Saini , Mahender Yadav , Gaurav Kumar , Pankaj Kumar","doi":"10.1016/j.jeca.2024.e00398","DOIUrl":"10.1016/j.jeca.2024.e00398","url":null,"abstract":"<div><div>The outbreak of the virus in early 2020 led to widespread market volatility and significant declines in stock prices. The importance of the ASEAN-5 markets has emerged as a result of the pandemic. Post-covid-19 and Russia-Ukraine war, these markets have gained attention from investors and researchers. Therefore, it is crucial to understand the extent to which the ASEAN-5 markets are connected to other major markets in order to fully grasp the impact of the pandemic on global stock markets. Hence, this study aims to examine the connectedness among ASEAN-5, the US, the UK, India, and China's stock markets. The data for the period January 2017 to December 2022 were retrieved. DCC-GARCH is employed to fetch the connectedness for sub-periods: pre, during, and post-covid-19. The results in the pre-covid-19 period highlight that Indian markets are least connected with the others; the Philippines is the worst net volatility receiver. During covid-19, China is the net volatility receiver, in the post-covid-19 period; Singapore is the net volatility receiver. The results are robust to the Minimum Spanning Tree (MST) analysis. During the crisis, investors should rebalance or reallocate their portfolios due to increased connection and declining benefits of diversification. To prevent the local markets from being affected by other markets, policymakers should take action.</div></div>","PeriodicalId":38259,"journal":{"name":"Journal of Economic Asymmetries","volume":"31 ","pages":"Article e00398"},"PeriodicalIF":0.0,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143646","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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