Discriminating Contagion : An Alternative Explanation of Contagious Currency Crises in Emerging Markets /

This paper shows that a country's vulnerability to contagious crises depends on the visible similarities between that country and other countries that are experiencing crises. A country is vulnerable to shifts in investor sentiment if it exhibits weaknesses in the same economic variables as oth...

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Bibliografiske detaljer
Hovedforfatter: Ahluwalia, Pavan
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2000.
Serier:IMF Working Papers; Working Paper ; No. 2000/014
Online adgang:Full text available on IMF
Beskrivelse
Summary:This paper shows that a country's vulnerability to contagious crises depends on the visible similarities between that country and other countries that are experiencing crises. A country is vulnerable to shifts in investor sentiment if it exhibits weaknesses in the same economic variables as other countries affected by a contagious crisis (particularly the country that started the contagious wave), or if it is located in the same region. The paper uses a sample of 19 emerging markets, and data from the Mexican, Asian, and Russian crises to provide evidence of this discriminating contagion, after controlling for alternative channels of contagion such as trade spillovers and financial linkages.
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Fysisk beskrivelse:1 online resource (38 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Adgang:Electronic access restricted to authorized BRAC University faculty, staff and students