@workingpaper{Asongu2011bt,
title = {Globalization, financial crisis and contagion: time-dynamic evidence from financial markets of developing countries},
author = {Simplice A Asongu},
editor = {African 2011 Governance and Development Institute WP/11/004},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Globalisation-financial-crisis-and-contagion.-Time-dynamic-evidence-from-financial-markets-of-developing-countries.pdf},
year = {2011},
date = {2011-04-01},
abstract = {Financial integration among economies has the benefit of improving allocation
efficiency and diversifying risk. However the recent global financial crisis, considered as
the worst since the Great Depression has re-ignited the fierce debate about the merits of
financial globalization and its implications for growth especially in developing countries.
This paper examines whether equity markets in emerging countries were vulnerable to
contagion during the recent financial meltdown. Findings show: (1) with the exceptions of
India and Dhaka, Asian markets were worst hit; (2) but for Peru, Venezuela and
Columbia, Latin American countries were least affected; (3) Africa and Middle East
emerging markets were averagely contaminated with the exceptions of Kenya, Namibia,
Nigeria, Morocco, Dubai, Jordan, Israel, Oman, Saudi Arabia and Lebanon. Results
have two important policy implications. Firstly, we confirm that Latin America was most
prepared to brace the financial crisis, implying their fiscal and monetary policies are
desirous of examination and imitation. Secondly, we have confirmed that strategic
opening of the current and capital accounts based on empirical evidence for a given
region/country as practiced by India is a caution against global economic and financial
shocks.},
keywords = {Globalization; Financial crisis; Contagion; developing countries; Equity Markets},
pubstate = {published},
tppubtype = {workingpaper}
}