What Drives Contagion : Trade Neighborhood, or Financial Links? /

This paper presents evidence on the relative importance of alternative contagion channels during the Thai, Russian, and Brazilian crises. Results show that when crises are measured by changes in sovereign bond spreads, financial competition seems to explain almost all contagion episodes. However, wh...

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Détails bibliographiques
Auteur principal: Valdes, Rodrigo
Autres auteurs: Hernandez, Leonardo
Format: Revue
Langue:English
Publié: Washington, D.C. : International Monetary Fund, 2001.
Collection:IMF Working Papers; Working Paper ; No. 2001/029
Accès en ligne:Full text available on IMF
Description
Résumé:This paper presents evidence on the relative importance of alternative contagion channels during the Thai, Russian, and Brazilian crises. Results show that when crises are measured by changes in sovereign bond spreads, financial competition seems to explain almost all contagion episodes. However, when crises are measured by stock market returns, trade links and neighborhood effects appear to be relevant contagion channels during the Thai and Brazilian crises, while financial competition remains the only relevant channel in the case of the Russian crisis.
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Description matérielle:1 online resource (22 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accès:Electronic access restricted to authorized BRAC University faculty, staff and students