Chapter 6. The Impact of Covid-19 on the Financial Contagion of Real Economy: A Sectoral Analysis

Food safety concerns have become increasingly important challenge for agricultural trade. Sanitary and phytosanitary (SPS) measures are often considered as major non-tariff trade barriers, which have surged rapidly over the recent decade. This study systematically investigates the impact of China’s SPS measures on Thai fruit exports. The panel dataset is constructed with 17 Thai fruit items for the sample period 2000–2018. Gravity equations are estimated to quantify the trade effects of SPS measures on the value of fruit exports from Thailand to China. The results from the sectoral analysis reveal that the restrictiveness of SPS measures has a positive and substantial effect on export volumes. This suggests that non-arbitrary and informative SPS requirements imposed by a large importing country would help facilitate the agricultural trade.

Download Full-text

Financial contagion: The impact of the volatility of global stock exchanges on the Lima-Peru Stock Exchange

Economía & Negocios ◽

10.33326/27086062.2019.1.896 ◽

2020 ◽

Vol 1 (1) ◽

pp. 13-27

Author(s):

Pedro Pablo Chambi Condori

Keyword(s):

Stock Market ◽

Financial Markets ◽

Stock Exchange ◽

Market Volatility ◽

Financial Contagion ◽

Stock Market Volatility ◽

Important Indicator ◽

Dynamic Correlation ◽

High Volatility ◽

The Impact

What happens in the international financial markets in terms of volatility, have an impact on the results of the local stock market financial markets, as a result of the spread and transmission of larger stock market volatility to smaller markets such as the Peruvian, assertion that goes in accordance with the results obtained in the study in reference. The statistical evaluation of econometric models, suggest that the model obtained can be used for forecasting volatility expected in the very short term, very important estimates for agents involved, because these models can contribute to properly align the attitude to be adopted in certain circumstances of high volatility, for example in the input, output, refuge or permanence in the markets and also in the selection of best steps and in the structuring of the portfolio of investment with equity and additionally you can view through the correlation on which markets is can or not act and consequently the best results of profitability in the equity markets. This work comprises four well-defined sections; a brief history of the financial volatility of the last 15 years, a tight summary of the background and a dense summary of the methodology used in the process of the study, exposure of the results obtained and the declaration of the main conclusions which led us mention research, which allows writing, evidence of transmission and spread of the larger stock markets toward the Peruvian stock market volatility, as in the case of the American market to the market Peruvian stock market with the coefficient of dynamic correlation of 0.32, followed by the Spanish market and the market of China. Additionally, the coefficient of interrelation found by means of the model dcc mgarch is a very important indicator in the structure of portfolios of investment with instruments that they quote on the financial global markets.

Download Full-text

The Impact of Financial Stability on Real Economy in Turkey: Based on Linear and Non-Linear ARDL Models

Sosyoekonomi ◽

10.17233/sosyoekonomi.2020.04.06 ◽

2020 ◽

pp. 117-140

Author(s):

Mesut Alper GEZER ◽

Ramazan KILIÇ

Keyword(s):

Financial Stability ◽

Real Economy ◽

Non Linear ◽

The Impact

Download Full-text

Russia’s banking sector during the pandemic

Vestnik Universiteta ◽

10.26425/1816-4277-2021-11-157-163 ◽

2022 ◽

pp. 157-163

Author(s):

E. N. Gavrilova

Keyword(s):

Systematic Approach ◽

Banking Sector ◽

Banking System ◽

Policy Instruments ◽

Graphical Methods ◽

Real Economy ◽

Good Test ◽

Russian Economy ◽

Monetary Authorities ◽

The Impact

Quarantine and self-isolation have become a new challenge for the Russian economy, changed many areas of our life, revealed new weaknesses in the banking system and monetary regulation of the economy, and also become a good test for the post-crisis financial system. In this article using a systematic approach to the study of information, analytical and graphical methods the dynamics of the Russian banking sector during the development of the coronavirus pandemic and the specifics of recovery from the crisis have been investigated. The innovations and improvements brought about by the pandemic have been studied. The Central Bank of Russia’s monetary policy instruments used to mitigate the impact of the pandemic on the real economy in general and on the banking sector in particular have been reviewed. The features of anti-crisis measures taken by the monetary authorities in our country have been revealed.

Download Full-text

On Financial Contagion Through ETFs

Recent Advances and Applications in Alternative Investments - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-7998-2436-7.ch004 ◽

2020 ◽

pp. 82-101

Author(s):

Alexia Thomaidou ◽

Dimitris Kenourgios

Keyword(s):

Financial Crisis ◽

Sovereign Debt ◽

Global Financial Crisis ◽

Debt Crisis ◽

Financial Contagion ◽

Sovereign Debt Crisis ◽

European Sovereign Debt Crisis ◽

The Interest Rate ◽

The Global Financial Crisis ◽

The Impact

This chapter investigates the impact of the Global Financial Crisis and the European Sovereign Debt Crisis in ETFs across regions and segments. In particular, two tests are taking place, with the first one to examine if there is evidence of contagion effect and the second one to test the affection of risks in each pair of ETFs. The evidence across the stable period and the two crisis periods suggests the existence of the transmission of shocks from the Global Financial ETF to regional and sectoral ETFs. However, there is evidence that some of the ETFs remain less unaffected during both crises and some of them are immune. Moreover, the authors examine the impact of several control variables, which represent various risks, to the correlation of each pair of ETFs and the results show the influence of the interest rate risk and interbank liquidity risk during the Global Financial Crisis and the European Sovereign Debt Crisis.

Download Full-text

Prone to Fail: The Pre-Crisis Financial System

The Journal of Economic Perspectives ◽

10.1257/jep.33.1.81 ◽

2019 ◽

Vol 33 (1) ◽

pp. 81-106 ◽

Cited By ~ 6

Author(s):

Darrell Duffie

Keyword(s):

Housing Market ◽

Financial Stability ◽

Financial System ◽

Market Discipline ◽

Real Economy ◽

Balance Sheets ◽

The Core ◽

Better Regulation ◽

Weakly Supervised ◽

The Impact

The financial crisis that began in 2007 was triggered by over-leveraged homeowners and a severe downturn in US housing markets. However, a reasonably well-supervised financial system would have been much more resilient to this and other types of severe shocks. Instead, the core of the financial system became a key channel of propagation and magnification of losses suffered in the housing market. Critical financial intermediaries failed, or were bailed out, or dramatically reduced their provision of liquidity and credit to the economy. In short, the core financial system ceased to perform its intended functions for the real economy at a reasonable level of effectiveness. As a result, the impact of the housing-market shock on the rest of the economy was much larger than necessary. In this essay, I will review the key sources of fragility in the core financial system. I discuss the weakly supervised balance sheets of the largest banks and investment banks; the run-prone designs and weak regulation of the markets for securities financing and over-the-counter derivatives; the undue reliance of regulators on “market discipline; and the interplay of too-big-to-fail and the failure of market discipline. Finally, I point to some significant positive strides that have been made since the crisis: improvements in the capitalization of the largest financial institutions, a reduction of unsafe practices and infrastructure in the markets for securities financing and derivatives, and a significantly reduced presumption that the largest financial firms will be bailed out by taxpayer money in the future. But I will also mention some remaining challenges to financial stability that could be addressed with better regulation and market infrastructure.

Download Full-text