International Trade Relations and the Contagious Effects of the Asian Financial Crisis

2000 ◽  
Vol 03 (03) ◽  
pp. 367-399 ◽  
Author(s):  
Chunchi Wu
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
East Asian ◽  
Asian Financial Crisis ◽  
Trade Relations ◽  
Fundamental Causes ◽  
Asian Economies ◽  
Trade Relationship ◽  
The Impact ◽  
The U.S

This paper examines the trade relationship among Pacific Rim Asian economies and the U.S. with an attempt at understanding the fundamental causes for the contagious effects of the Asian financial crisis. East Asian economies trade extensively among themselves and with the U.S. This great dependence on foreign trade and investments has considerably increased the instability of the economies and financial markets in this region. It is found that the impact of the financial crisis on a domestic economy is positively correlated with its trade relationship with foreign economies. The importance of the trade relationship is manifested in the financial markets. Results show that the returns and volatility of a stock market are significantly influenced by the markets of its major trading partners. Also, foreign exchange markets often significantly interact with stock markets, especially following the Asian financial crisis. Furthermore, the Japanese and Hong Kong markets, instead of the U.S. market, had a dominating effect on East Asian financial markets during the period of the financial crisis.

scholarly journals GLOBAL FINANCIAL CRISES AND ECONOMIC GROWTH : EVIDENCE FROM EAST ASIAN ECONOMIES

2012 ◽  
Vol 15 (2) ◽  
pp. 35-54
Author(s):  
Arisyi F. Raz ◽  
Tamarind P. K. Indra ◽  
Dea K. Artikasih ◽  
Syalinda Citra
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Financial Crises ◽  
Global Financial Crisis ◽  
East Asian ◽  
Economic Fundamentals ◽  
Short Period ◽  
Asian Economies ◽  
East Asian Economies ◽  
The Impact

As economies become more integrated in the midst of globalization, financial crisis that occurs in one country can easily transmit to other countries, becoming global financial catastrophe in a short period of time. In such event, strong economic fundamentals are particularly important to defend a country from the contagious effect of the crisis. As evidence, due to the fragile economic fundamentals and lacking government credibility, East Asian economies were easily attacked by the crisis in 1997 once the sentiment deteriorated. Nevertheless, the region had learned its lessons in 1997 thereby proofing its resilience in facing the global financial crisis that struck in 2008 by improving its economic fundamentals as well as policymakers’ credibility. This paper starts with theories on economic growth and financial crisis. Further, it empirically examines to what extent the financial crises in 1997 and 2008 affect East Asian economies by using panel data econometrics. The evidence shows that, even though both crises have contributed adverse impacts on East Asian economies, the magnitude of the 2008 crisis was relatively less severe than that in 1997. Finally, this study also provides further discussions regarding how East Asian economies had successfully minimized the impact of the global crisis in 2008. Keywords: Global Financial Crises; East Asian Economies; Economic Growth;Financial Market; Random and Fixed EffectsJEL Classification: C330, E440, G010

scholarly journals Day-of-the-Week Effect and Volatility in Stock Returns: Evidence From East Asian Financial Markets

2008 ◽  
Author(s):  
Chiaku Chukwuogor-Ndu
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Stock Returns ◽  
East Asian ◽  
Asian Financial Crisis ◽  
Return Volatility ◽  
Crisis Period ◽  
Day Of The Week ◽  
Standard Deviations ◽  
Daily Returns

The presence of the day-of-the-week effect has been documented in finance literature. This paper investigates the presence of the day-of-the-week effect and return volatility in ten East-Asian financial markets in the post Asian financial crisis period, after 1998. A set of parametric and non-parametric tests is used to test the equality of mean returns and standard deviations of returns. The results indicate the presence of the day-of-the-week effect and insignificant daily returns volatility in most markets. Some of these results reinforce some previously documented evidence and others are at variance with published results for the same markets. This effect, unlike in devloped markets, is still persistent.  

scholarly journals The financial crisis and securitization

2020 ◽  
Vol 1 (1) ◽  
pp. 37-48
Author(s):  
Ewa Szabłowska
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Financial Market ◽  
Subprime Crisis ◽  
Subprime Mortgage ◽  
Mortgage Crisis ◽  
Indirect Impact ◽  
The Impact ◽  
Near Future ◽  
The U.S

Securitization means the change of non-liquid assets into securities. This topic has become more popular, mainly due to the U.S. subprime mortgage crisis. In this article, an analysis is given of the current situation in financial markets and the changes, which were implemented from the first days of subprime crisis. Also mentioned is the impact the crisis has had on securitization development. Part of the article is devoted to the situation on the Polish financial market. It is quite a new market and it is susceptible to such crises. The Article presents the part played by securitization in the Polish financial market and the circumstances for its growth in the near future. It also covers the latest information related to financial market regulations, which could have direct or indirect impact on the quantity and value of securitization transactions.

Taiwan's Role in the Asian Financial Crisis

1998 ◽  
Vol 01 (04) ◽  
pp. 529-544 ◽  
Author(s):  
Rong-I Wu
Keyword(s):  
Financial Crisis ◽  
East Asian ◽  
Asian Financial Crisis ◽  
Share Price ◽  
The World ◽  
Asian Economies ◽  
Almost All ◽  
East Asian Economies

The depth of the 1997 Asian financial crisis has taken the world by surprise. Almost all major East Asian economies had experienced significant falls both in currency and share price. Some countries have been left with tremendous economic difficulties after their currencies were severely battered. Taiwan has emerged from the crisis as a stabilizing force in the region with its economy comparatively unscathed. This paper discusses the performance of Taiwan's economy throughout the crisis by looking at several factors underlying the financial turmoil. Meanwhile, it gives evidence to support the devaluation of the New Taiwan dollar as of October 1997.

Sign in / Sign up

Export Citation Format

Share Document