Exploring the Nexus between Political Risk and Financial Risk in the Balkan Countries: A Wavelet-Based NARDL Coherency analysis

The empirical investigation of which risk factor—political or financial—is the optimal driver country in emerging economies twenty-first century has grown into a significant and volatile issue recent decades. This paper investigates linkages between political financial four Balkan (i.e., Greece, Albania, Bulgaria, Romania) from 1984 Q3 to 2018 Q4, using non-linear autoregressive distributed lag co-integration (NARDL) wavelet coherence approaches. As result, findings links are being used provide insights effective urban planning cities. outcomes NARDAL analysis indicate that there short-term long-term asymmetric countries except for Romania. study also revealed is vulnerability at different frequencies region, also, key predicting over selected period Albania Bulgaria.