Weathering financial crisis in China: the role of global market integration

This study investigates the time-varying integration of stock markets from a global and regional perspective, the consequences of two major global financial crises, i.e., the Asian Financial Crisis and the subprime mortgage, and the Crisis triggered by COVID-19. We contribute to the growing amount of literature on market integration, especially on the role of regional to global market integration. Although regional integration encourages an acceleration of global integration, the effect of a regional factor is not uniform among regions. It is important to understand regional to global market integration and the consequences during the crises. This study employs time-series data from economic territories based on the Morgan Stanley Capital International (MSCI) Asia-Pacific classification. It introduces an alternative measurement of time-varying integration by considering the correlation of regional and global markets using a simple international model, equivalent to the capital asset pricing model (CAPM). The result shows that the market integrations are time-varying both globally and regionally. The domestic markets are affected by the global market and its regional market, as the role of a regional market emerges during the financial crisis period. We find the different responses of stock markets during the Covid-19 period as a dominant factor to exacerbate the market return globally. In the long run, the upward trend for the regional market integration in both developed and emerging markets is inherent to the global market integration.DOI: 10.26905/jkdp.v25i3.5822

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Causes and Consequences of the World Financial Crisis 2008: A Historical Perspective

Journal of Economic and Social Studies ◽

10.14706/jecoss21812 ◽

2021 ◽

Vol 8 (1) ◽

Author(s):

Adis Maksic ◽

◽

Selma Delalic ◽

Adem Olovčić

Keyword(s):

Financial Crisis ◽

Global Economy ◽

Global Financial Crisis ◽

Historical Context ◽

Global Market ◽

Financial Policies ◽

The West ◽

The World ◽

Economic Ideology

Abstract: This paper situates the 2008 Global Financial Crisis into the wider historical context to argue that the roots of the crisis can be traced back to the dominant economic ideology in the West during the 1970s. It shows that the corresponding financial policies, implemented by the powerful western economies during the four decades that preceded the crisis, created an institutional framework that fostered financial irresponsibility and made the crisis all but inevitable. The paper also explores the ideas that led to the stabilization of the global market as well as the role of China in charting the way ahead. Ultimately, the discussion highlights the inherent tendency of neoliberal economic ideology to create market instabilities whose consequences for the global economy can be devastating.

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AN EMPIRICAL STUDY OF INDIAN INSURANCE INDUSTRY POST GLOBAL FINANCIAL CRISIS

GBAMS- Vidushi ◽

10.26829/vidushi.v6i01-02.9723 ◽

2015 ◽

Vol 6 (01-02) ◽

Author(s):

Anis Ur Rehman ◽

Yasir Arafat Elahi ◽

Sushma .

Keyword(s):

Financial Crisis ◽

Global Financial Crisis ◽

Insurance Industry ◽

Primary Data ◽

Policy Recommendations ◽

Insurance Sector ◽

The World ◽

The Impact ◽

The New Deal

India has recently emerged as a major political and economic power in the world. The financial crisis that engulfed the world in 2008 needed developing countries like India to lead the rescue and recovery, instead of G7 westerns countries who dealt with such crisis in the past. Recently, discussions and negotiations are going amongst G20 countries regarding a new global financial architecture (G-20 Summit, 2008). The outcome will affect the relevant industries in India and hence it is a public interest issue for the actuarial profession in the country. Increased and more intrusive and costly regulations and red tapes are likely to be a part of the new deal (Economic Survey 2009-10). The objective of this paper is to study the perception of higher level authorities in Insurance sector regarding the role of regulator in minimizing the impact of global financial crisis. The primary data has been collected from 200 authorities in insurance industry. The data has been analyzed with statistical tools like MS-Excel. On the basis of the findings, various measures and policy recommendations for insurers have been suggested to minimize the impact of crisis.

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