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East Asian Economic Review Vol. 4, No. 3, 2000. pp. 3-40.

DOI https://dx.doi.org/10.11644/KIEP.JEAI.2000.4.3.67

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A Critical Survey on the Contagion Effects of Financial Crisis

Author

Chi-Young Song

Kookmin University

cysong@kookmin.ac.kr
Creative Commons Attribution License

EAER is an open access journal distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license.

Abstract

This paper critically reviews theoretical and empirical studies on financial contagion. The East Asian crisis in 1997 as well as the Mexican crisis in 1994 saw the serious spillover of financial turbulences among different countries, and consequently this has encouraged theoretical and empirical investigation of financial contagion effects. However, rigorous evaluation and assessment of existing studies are yet to be made. In this paper, we introduce and critically evaluate previous studies on the definitions and phenomena, and causes of financial contagion effects. We also discuss effective policy measures to contain them, and topics for future studies.

JEL classification: F31, F32,

Keywords

Financial Crisis, Contagion Effects

Language

Korean

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