Regional Vulnerability: The Case of East Asia

Ashoka Mody and Mark Taylor

No 269746, Economic Research Papers from University of Warwick - Department of Economics

Abstract: In a case study of six East Asian economies, we use dynamic factor analysis to estimate a regional component of the exchange market pressure index (EMPI) as a measure of regional financial stress. The extent to which this indicator is explained by regional economic and financial factors is interpreted as regional vulnerability to crisis. We find that regional external liabilities and exuberance in domestic stock and credit markets, as well as the US high yield spread, were positively correlated with regional vulnerability. Individual country EMPIs are also explained by regional factors, with country-specific factors and trade linkages playing little role.

Keywords: Agricultural and Food Policy; International Development (search for similar items in EconPapers)
Pages: 28
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/269746/files/twerp_776.pdf (application/pdf)
https://ageconsearch.umn.edu/record/269746/files/twerp_776.pdf?subformat=pdfa (application/pdf)

Related works:
Journal Article: Regional vulnerability: The case of East Asia (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:269746

DOI: 10.22004/ag.econ.269746

Access Statistics for this paper

More papers in Economic Research Papers from University of Warwick - Department of Economics
Bibliographic data for series maintained by AgEcon Search ().