Dynamic linkages between BRIC  equities and global financial assets using Auto-regressive Distributed Lag Model

Manzoor, Mahak; Shawl, Sana

doi:10.22059/jcountst.2026.412634.1467

Dynamic linkages between BRIC equities and global financial assets using Auto-regressive Distributed Lag Model

Document Type : Original

Authors

Mahak Manzoor ¹
Sana Shawl ²

¹ Department of humanities and management, Institute of technology, university of Kashmir, Srinagar, Jammu and Kashmir, Srinagar, India.

² Department of Management Studies, University of Kashmir, Srinagar, India.

10.22059/jcountst.2026.412634.1467

Abstract

The study examines the dynamic linkages among BRIC (Brazil, Russia, India, and China) stock markets and key global financial assets: gold, Bitcoin, U.S. Treasury bonds, and the CBOE Volatility Index (VIX). During financial turbulence, investors often divert their investments towards safe-haven assets, but empirical research on dynamic linkages of these variables with BRIC equity markets is limited. Using secondary data from 2015 to 2025, this study addresses this gap employing the Auto-regressive Distributed Lag (ARDL) framework, to study both short-run and long-run dynamics between the MSCI BRIC index (dependent variable) and global assets (Bitcoin, VIX, gold, and bonds as explanatory variables). The results confirm a long-run co-integrating relationship between the dependent (BRIC) and explanatory variables (bitcoin, VIX, gold and bonds). The VIX has a significant negative impact on BRIC stock indices in both the short and long run. U.S. Treasury bonds also show a negative long-run relationship, consistent with flight-to-safety behaviour. Conversely, gold has a significant positive long-run impact, with both gold and bonds showing a positive short-run effect. These findings highlight the importance of balanced portfolios, the hedging abilities of gold, and the stabilizing role of bonds in risk management for emerging markets.

Keywords

Main Subjects

Economics

حوزة موضوعی: کشورهای عضو بریکس

Scope: BRICS

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