A Contagion through Exposure to Foreign Banks during the Global Financial Crisis
Park, Cyn-Young; Shin, Kwanho | July 2017
Abstract
Although the global financial crisis of 2008 took root in the advanced countries, its shocks spread through the emerging economies, reflecting the increasingly interconnected global financial system. This paper develops an empirical methodology to test the contagion effect at the country level using bilateral data on bank claims between countries. It measures the direct and indirect exposures of emerging economies to crisis countries and tests whether these matter for capital outflows from emerging economies. The paper measures these exposures to the crisis-affected countries by using bilateral foreign claims sourced from Bank for International Settlements (i) consolidated banking statistics foreign claims on immediate counterparty and ultimate risk bases and (ii) locational banking statistics cross-border total claims. Findings show that emerging market economies more exposed directly or indirectly to banks in the crisis-affected countries suffered more capital outflows during the global financial crisis.
Citation
Park, Cyn-Young; Shin, Kwanho. 2017. A Contagion through Exposure to Foreign Banks during the Global Financial Crisis. © Asian Development Bank. http://hdl.handle.net/11540/7388. License: CC BY 3.0 IGO.ISSN
2313-6537 (Print)
2313-6545 (e-ISSN)
Keywords
Crisis
Unemployment
Economic cooperation
Gross domestic product
Employment
Economic forecast
Economic indicators
Growth models
Gross domestic product
Macroeconomics
Economic forecast
Economic Crisis
Economic Efficiency
Economic Policies
Regional Economic Development
Job Evaluation
Evaluation
Macroeconomic
Macroeconomic Analysis
Performance Evaluation
Impact Evaluation
Economic Welfare
Economic Incentives
Financial crisis
Labor economics
Regional economics
Turnover
Economic survey
Job analysis
Labor turnover
International relief
Exports
Economic development projects
Economic policy
Economic forecasting
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