EXPLORING THE LINKAGES BETWEEN GREEN BONDS AND INTERNATIONAL FINANCIAL MARKETS: AN INTERNATIONAL PORTFOLIO PERSPECTIVE

Authors

  • Maqsood-Ur-Rehman PhD Scholar, Department of Public Administration, Gomal University, Dera Ismail Khan, Pakistan
  • Irfan Ullah Khan Assistant Professor, Department of Public Administration, Gomal University, Dera Ismail Khan
  • Muhammad Niaz Khan Assistant Professor, Institute of Management Sciences, University of Science & Technology Bannu

DOI:

https://doi.org/10.53664/JSRD/05-02-2024-23-277-288

Abstract

The aim of study is to examine the dynamic linkages between green bond & international financial markets. In particular, the study investigates the inter-connections among green bonds, world’s developed and emerging equity markets, commodities market (gold & oil) and the foreign exchange market. Sample period ranges from July 1, 2014, to June 30, 2023 encircling numerous important events including COVID-19 pandemics. For empirical investigation, study used combination of several econometric techniques including Johansen Cointegration model and Granger Causality test and analysis for examining short & for long-term associations among markets. Results of study show that these markets are linked in varying degrees in long-run as evident from cointegration results that show two cointegrating vectors. This infers that there are limited diversification benefits specially in long-run in selected markets. In short-run, results show diversification potential as showed by results from Granger Causality tests. Results have important implications for investors & fund managers in making portfolio decisions, & policy makers in devising various strategies for risk mitigation during turbulent periods.

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Published

30-06-2024

How to Cite

Maqsood-Ur-Rehman, Irfan Ullah Khan, & Muhammad Niaz Khan. (2024). EXPLORING THE LINKAGES BETWEEN GREEN BONDS AND INTERNATIONAL FINANCIAL MARKETS: AN INTERNATIONAL PORTFOLIO PERSPECTIVE. JOURNAL OF SOCIAL RESEARCH DEVELOPMENT, 5(2), 277–288. https://doi.org/10.53664/JSRD/05-02-2024-23-277-288

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