Work

The Impact of Israeli and Saudi Arabian Geopolitical Risks on the Lebanese Financial Market

Year: 2021

Type: article

Abstract: Hezbollah is best defined in geopolitics as the Iranian ideology proxy that aims to grow the Persian footprint and to gain geopolitical strategic depth in the region. Its role continuously requires geopolitical conflicts, mainly against Saudi Arabia and Israel—for resistance, ideological, and geopolitical purposes. Being a state within a state, Hezbollah militia makes sovereign geopolitical decisions and forces Lebanon to pay for the consequences. This is the first economic study that empirically investigates under vector autoregression (VAR) models the dynamic causal relationship between Saudi Arabia and Israel’s geopolitical risks and Lebanon’s financial stability and economic activity. The results show that Saudi Arabia and Israel’s geopolitical risks affect Lebanon’s economy differently. Economic and financial stability cannot be promoted independently of regional geopolitical conflict.

Source: Journal of risk and financial management

DOI: 10.3390/jrfm14030094

Author: Layal Mansour-Ichrakieh

Institution: Lebanese American University

Language: English

Topic: Market Dynamics and Volatility

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $1,296