What Drives Contagion: Trade Neighborhood, or Financial Links?
By Leonardo Hernández, R. Valdes. Social Science Research Network, 2001
168 citations recorded by the source corpus.
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.
Subfields: Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/73edb09f1f37287ecff832637ef556cd566a6e89
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- Fasika Damte Haile
- Susan Pozo
- S. Lizarazo
- Beatrice Weder
- C. Rijckeghem
- Kristin J. Forbes
- R. H. Adams
- Andreas Buehn
In Finance
- Fasika Damte Haile
- Susan Pozo
- S. Lizarazo
- Beatrice Weder
- C. Rijckeghem
- Linda S. Goldberg
- Kristin J. Forbes
- Paolo Piselli
Citations in the corpus
- Default risk and risk averse international investors (2013, background): “See, for example, Kaminsky and Reinhart (1998), Kaminsky and Reinhart (2000), Van Rijckeghem and Weder (2001), Kaminsky et al.(2001), Hernández and Valdes (2001), Broner et al.(2006) and Hau and Rey (2008).”
- Spillovers through banking centers: a panel data analysis of bank flows (2003, background): “…market crises has been examined by a number of authors (Kaminsky and Reinhart, 2000a), Caramazza et al. (2000), Van Rijckeghem and Weder (2001), and Hernandez and Valdes (2000)), this has been done in an aggregated and indirect way, examining the effect of a proxy for competition for funds with an…”
- Determinants and Repercussions of the Composition of Capital Inflows (2002, unknown): “Hernández and Valdes (2001) find evidence of contagion through indirect financial linkages.”
- Currency crisis contagion and the identification of transmission channels (2008, methodology): “The importance of common bank lender is also supported in Van Rijckeghem and Weder (2001) and Hernandez and Valdes (2001).”