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East Asian Crisis (east + asian_crisis)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting75%

Selected Abstracts

Asset Bubbles, Leverage and ,Lifeboats': Elements of the East Asian Crisis

THE ECONOMIC JOURNAL, Issue 460 2000
H. J. Edison
Collapsing credit markets have been blamed for the depth and persistence of the Great Depression in the United States. Could similar mechanisms have played a role in ending the East Asian economic miracle , and in creating fragility in global financial markets? After a brief account of the nature of the East Asian crises of 1997/8, we use the framework of highly-leveraged, fully-collaterised firms due to Kiyotaki and Moore (1997) to explore the impact of a credit crunch. The paper emphasises the fragility of equilibrium and how rapidly boom can turn to bust. [source]

Testing for causality-in-variance: an application to the East Asian markets

INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 3 2002
Guglielmo Maria Caporale
Abstract In this paper we provide some empirical evidence on the casual relationship between stock prices and exchange rates volatility in four East Asian countries. In order to test for causality-in-variance, we use a GARCH model for which a BEKK representation is adopted, and then test for the relevant zero restrictions on the conditional variance parameters. We find that in the pre-crisis sample stock prices lead exchange rates negatively in Japan and South Korea (consistently with the portfolio approach) and positively in Indonesia and Thailand. In the latter two countries after the onset of the 1997 East Asian crisis the spillover effects are found to be bidirectional. Copyright © 2002 John Wiley & Sons, Ltd. [source]

Is China turning Latin?

JOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 6 2010
China's balancing act between power, dependence in the lead up to global crisis
Abstract China's apparent escape from the external constraints of peripheral late industrialisation in the build up to the global economic crisis of 2007,2009 has been recent and remains tenuous. Before its spectacular trade surpluses of the 2000s, China's external accounts reflected many of these constraints. Even in the midst of the surplus surge, external vulnerabilities of a peripheral nature have persisted. Besides the issue of export dependence, which is the conventional focus of most crisis-related studies on China, vulnerabilities have been more profoundly related to the dominance of foreign ownership in China's export sector and to the relatively subordinate position of this export sector within the massive rerouting of international production networks via China that followed the East Asian crisis, in large part led by Northern transnational corporations. Copyright © 2010 John Wiley & Sons, Ltd. [source]