Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/239510 
Year of Publication: 
2021
Citation: 
[Journal:] Journal of Risk and Financial Management [ISSN:] 1911-8074 [Volume:] 14 [Issue:] 3 [Publisher:] MDPI [Place:] Basel [Year:] 2021 [Pages:] 1-24
Publisher: 
MDPI, Basel
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.
Subjects: 
financial stress index
geopolitical risks
Granger causality VAR
Hezbollah
Israel
Lebanon
Saudi Arabia
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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