Re-examining the Contagion Channels of Global Financial Crises: Evidence from the Twelve Years since the US Subprime Crisis

Hai Jiang, Shenfeng Tang, Lifang Li, Fangming Xu and Qian Di

Research in International Business and Finance, 2022, vol. 60, issue C

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.

Keywords: financial crises; contagion channels; spatial econometrics; subprime crisis (search for similar items in EconPapers)
JEL-codes: F30 F31 F32 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:60:y:2022:i:c:s0275531922000058

DOI: 10.1016/j.ribaf.2022.101617

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