Table 7.
Impact of Market Resilience on Developed vs. Emerging Markets.
| (1) |
(2) |
(3) |
|
|---|---|---|---|
| Var | Conditional Variance Process | ||
| CTC | 4.0330*** | 3.8783*** | 3.7916*** |
| (0.7299) | (0.7376) | (0.7704) | |
| EMG*CTC | 0.1721 | 0.2757 | −0.0018 |
| (0.9719) | (0.9789) | (1.0223) | |
| CTD | 4.8344*** | 5.4064*** | 6.4624*** |
| (0.5288) | (0.5310) | (0.5512) | |
| EMG*CTD | −2.7840*** | −3.2286*** | −3.8241*** |
| (0.7512) | (0.7552) | (0.7887) | |
| CSC | −0.1642*** | −0.1146*** | −0.0957* |
| (0.0414) | (0.0414) | (0.0574) | |
| EMG*CSC | 0.6134*** | 0.5987*** | 0.6112*** |
| (0.0704) | (0.0712) | (0.0958) | |
| CSD | 0.4878*** | 0.4184*** | 0.3747*** |
| (0.0523) | (0.0523) | (0.0688) | |
| EMG*CSD | −0.6573*** | −0.6566*** | −0.6339*** |
| (0.0890) | (0.0904) | (0.1187) | |
| EMG | 0.1396*** | −3.0079*** | −2.2836 |
| (0.0313) | (0.6113) | (4.6431) | |
| RES | −1.1023*** | ||
| (0.1329) | |||
| EMG*RES | 0.6472*** | ||
| (0.1382) | |||
| CPS | −0.5276** | ||
| (0.2644) | |||
| EMG*CPS | 0.2398 | ||
| (0.3466) | |||
| COG | −0.0279 | ||
| (0.1529) | |||
| EMG*COG | −0.6429*** | ||
| (0.1907) | |||
| MPR | −0.0692 | ||
| (0.0628) | |||
| EMG*MPR | 0.0932 | ||
| (0.0634) | |||
| LGD | 0.1126*** | ||
| (0.0212) | |||
| EMG*LGD | −0.3262*** | ||
| (0.0345) | |||
| PRO | −0.2976** | ||
| (0.1375) | |||
| EMG*PRO | −0.1493 | ||
| (0.1756) | |||
| OIN | 0.3477*** | ||
| (0.1186) | |||
| EMG*OIN | −0.0163 | ||
| (0.2414) | |||
| INQ | −0.0029 | ||
| (0.0034) | |||
| EMG*INQ | 0.5437 | ||
| (0.3878) | |||
| HEL | 0.0375 | ||
| (0.9191) | |||
| EMG*HEL | 0.5014 | ||
| (0.9569) | |||
| FDI | −0.8955*** | ||
| (0.1788) | |||
| EMG*FDI | 2.3223*** | ||
| (0.2771) | |||
| 0.0001 | −0.0167 | −0.0114 | |
| (0.0136) | (0.0154) | (0.0177) | |
| 0.4777*** | 0.4605*** | 0.4360*** | |
| (0.0213) | (0.0227) | (0.0257) | |
| 0.3448*** | 0.3121*** | 0.2297*** | |
| (0.0375) | (0.0369) | (0.0371) | |
| −5.9238*** | −1.2724** | −4.8607 | |
| (0.3278) | (0.5841) | (4.0841) | |
| Observations | 5,989 | 5,989 | 5,635 |
Note: In this table we compare the impact of resilience, its sub-components and other macro characteristics between developed and emerging markets within our sample countries listed in Table 2. Results in this table are generated from interaction terms with the emerging market dummy. Column (1) reports the results of COVID-19, column (2) reports the resilience score, and column (3) reports all other variables except the financial institutions development index (FII), as we have included the aggregate index, FDI. The growth in global and local COVID-19 cases and deaths are also included in (2) and (3). Standard errors are reported in parentheses.
***, ** and * indicates statistical significance at the 1%, 5% and 10% level, respectively.