Country risk components and financial asset markets interdependence: evidence from South Africa
Year: 2023

Over the last few decades, financial markets have become more interlinked. As a result, there has been an increased demand for information across markets and thus, a need for country-specific risk ratings. Risk ratings are vital for attracting investments and capital inflows in financial markets by providing signals regarding a country’s economic, financial and political fundamentals. However, there remains a lack of consensus on the nature of the relationship between country risk and key asset