The Impacts of Geopolitical Events on the Developed and Developing Stock Markets

DOI

10.2991/978-2-494069-31-2_138How to use a DOI?

Keywords

Geopolitical events; Impacts; Stock markets; Developed and developing countries; The United States; The European Union; The United Kingdom; Latin America; China

Abstract

The geopolitical conflicts/events usually have caused huge fluctuations on the stock market all over the world. Many scholars have studied the impacts that wars or changes of geopolitical relations on the stock markets. However, it is not clear whether the impacts on the developed and developing countries are the same. Therefore, in this article, we conclude and analyse how the stock markets react to geopolitical events respectively from developed and developing countries by reviewing and summarizing several previous 15 studies and looking at the Dow Jones Industrial Average Index and other stock indices. In the research of this paper, it is found that the reaction varies from countries to countries. For the developed countries, the reaction of the markets depends on their extent of participation in geopolitical events. For instance, the United States react much more slightly compared with the European Union. For developing countries, the reaction is closely connected with their regional or national factors, such as the characteristics of the markets or macro-control of the government, resulting in a gentle fluctuation. Generally speaking, the article provides a relatively complete summary for the effects of geopolitical events on the developed and developing stock markets, and suggests a better explanation of the markets’ behaviours.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Junyi Tan
AU  - Chengyu Wang
PY  - 2022
DA  - 2022/12/29
TI  - The Impacts of Geopolitical Events on the Developed and Developing Stock Markets
BT  - Proceedings of the 2022 6th International Seminar on Education, Management and Social Sciences (ISEMSS 2022)
PB  - Atlantis Press
SP  - 1181
EP  - 1189
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-31-2_138
DO  - 10.2991/978-2-494069-31-2_138
ID  - Tan2022
ER  -