Simplice A, Asongu (2011): Globalization, financial crisis and contagion: time-dynamic evidence from financial markets of developing countries.
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Financial integration among economies has the benefit of improving allocative efficiency and diversifying risk. However the recent global financial crisis, considered as the worst since the Great Depression has re-ignited the fierce debate about the merits of financial globalization and its implications for growth especially in developing countries. This paper examines whether equity markets in emerging countries were vulnerable to contagion during the recent financial meltdown. Findings show: (1) with the exception of India, Asian markets were worst hit; (2) but for Peru, Venezuela and Columbia, Latin American countries were least affected; (3) Africa and Middle East emerging markets were averagely contaminated with the exceptions of Kenya, Morocco, Dubai, Jordan and Lebanon. As a policy implication, India’s step-wise financial liberalization approach should be emulated. Lessons from Latin American fiscal and monetary policies should be learned and/or revised.
|Item Type:||MPRA Paper|
|Original Title:||Globalization, financial crisis and contagion: time-dynamic evidence from financial markets of developing countries|
|Keywords:||Globalization; Financial crisis; Contagion; developing countries; Equity Markets|
|Subjects:||F - International Economics > F3 - International Finance > F30 - General
G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets
G - Financial Economics > G1 - General Financial Markets > G10 - General
|Depositing User:||Simplice Anutechia Asongu|
|Date Deposited:||04. May 2011 06:41|
|Last Modified:||15. Feb 2013 14:15|
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Globalization, financial crisis and contagion: time-dynamic evidence from financial markets of developing countries. (deposited 13. Apr 2011 08:20)
- Globalization, financial crisis and contagion: time-dynamic evidence from financial markets of developing countries. (deposited 04. May 2011 06:41) [Currently Displayed]