The purpose of this study is to investigate the influence of the ROBO Global Robotics and Automation Index ETF on stock market in emerging economies. This study examines how advancements in robotics and automation technologies, as tracked by the ROBO ETF, affect stock market behavior in Brazil, China, India, Mexico and South Africa.
This study uses Quantile Regression, Quantile-on-Quantile Regression and Rolling Window Wavelet Correlation analysis. Data from October 2014 to September 2024 are used, focusing on indices of Bovespa (Brazil), SSEC (China), NIFTY50 (India), S&P/BMV IPC (Mexico) and FTSE/JSE All Share Index (South Africa).
The impact of the ROBO ETF on stock markets varies across emerging economies. Brazil and South Africa show stronger sensitivity to robotics trends, particularly under moderate market conditions. China and Mexico exhibit a weaker relationship, likely because of their more robust economic foundations. India demonstrates a moderate impact, highlighting opportunities in sectors adopting robotics, such as manufacturing and services.
This research extends Technological Innovation System theory to financial markets, offering insights into automation’s impact on stock behavior.
This study highlights opportunities in emerging markets for robotics adoption. This paper encourages managers to promote an inclusive approach to automation, ensuring economic growth benefits are widely shared across sectors.
This study aims to fill the gap in literature by linking technological advancements with financial market outcomes in emerging markets. This study offers a unique empirical examination of the ROBO ETF’s influence on emerging markets.
