THE RELATIONSHIP BETWEEN NEW ECONOMY SECTORS STOCK INDEX AND TRADE, CLIMATE AND WORLD UNCERTAINTY INDICES: LINEAR AND NONLINEAR NERVE TEST APPROACH

Year 2025, Volume: 26 Issue: 3, 182 - 199, 28.09.2025

Mehmet Ali Balta , Özge Demirkale

https://doi.org/10.53443/anadoluibfd.1638466

Abstract

As time progresses, developments in artificial intelligence, robotics, automation, and clean energy have created new sectors and changed the way traditional industries function. These changes and new sectors have become the number one instrument for developing countries and the world economy. This study aims to determine the extent to which businesses operating in these areas (artificial intelligence, automation, clean energy) will be affected by trade policy uncertainty, climate policy uncertainty, and world uncertainty using both linear and non-linear methods. For this purpose, the relationship between the S&P Kensho New Economy RAIC Index (S&P KNE RAIC) and Trade Policy Uncertainty (TPU), US Climate Policy Uncertainty (USCPU), and World Uncertainty Index (WUI) is analyzed by ARDL and NARDL methods. As a result of the analysis, it was proved that there is a statistically significant and negative long-run relationship between the S&P Kensho New Economy RAIC variable and the USCPU, TPU, and WUI variables with linear and non-linear tests.

Keywords

S&P Kensho New Economy RAIC Index , Trade Policy Uncertainty , US Climate Policy Uncertainty , World Uncertainty Index , ARDL and NARDL Method

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