Abstract
This study examines the contagion of the US subprime crisis across the world by focusing on four transmission mechanisms: macroeconomic fundamentals, political similarities, international trade and financial linkages. Using spatial analysis and a sample of 36 countries from 2002 to 2018, we find that all four contagion channels contribute to the rapid spread of financial crises around the world, with international trade and financial linkages playing the most prominent roles. Countries with higher inflation and domestic credit or lower exchange rates and current accounts tend to suffer more from financial crises.
Original language | English |
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Article number | 101617 |
Number of pages | 40 |
Journal | Research in International Business and Finance |
Volume | 60 |
Early online date | 19 Jan 2022 |
DOIs | |
Publication status | Published - 1 Apr 2022 |
Bibliographical note
Funding Information:We are grateful to the National Natural Science Foundation of China ( 71973053 , 71803066 ) and Jinan University Research Institute of Finance Base Self-found Project for supporting this research.
Publisher Copyright:
© 2022 Elsevier B.V.
Research Groups and Themes
- AF Financial Markets
Keywords
- financial crises
- contagion channels
- Spatial econometrics
- subprime crisis