ABSTRACT
Several Eurasian markets are considered as potential global financial centers. The main objective of this article is to evaluate the two strong candidates, Russia and Turkey, based on short- and long-run diversification benefits they provide to global investors along with big four global finance centers (US, UK, Hong Kong, Singapore) in the world. To that respect, we investigate both price spillover and volatility spillover effects among global finance centers and the two strong Eurasian candidates. Our results suggest that Istanbul Stock Exchange (ISE) has more diversification benefits and is more resilient to risk transfers from other markets compared to Moskow Stock Exchange (MSE).
Acknowledgments
The authors thank the editor, Ali M. Kutan, and anonymous referee for constructive suggestions, careful review, and numerous helpful comments, which greatly improved the quality of the article.
Notes
1. Unit root test results are not reported to save space in this article. The results are provided upon request.
2. The diagnostic tests are available by the authors upon request.
3. The diagnostic tests are available by the authors upon request.