Economic Growth in East Asia Before and After the Financial Crisis

Robert Barro

No 8330, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In 1997-98, five east Asian countries -- Indonesia, Malaysia, South Korea, the Philippines, and Thailand -- experienced sharp currency and banking crises. The contraction of real GDP was severe in relation to the previous history and in comparison with five east Asian countries that were less affected by the financial crisis. Recoveries in the five crisis countries in 1999-2000 were strong in most cases, but it is unclear whether the pre-crisis growth paths will be reattained. Indications for permanently depressed prospects come from the sharp reductions in investment ratios, which have recovered only slightly, and the lowered stock-market prices. A panel analysis for a broad group of economies shows that a combined currency and banking crisis typically reduces economic growth over a five-year period by 2% per year, compared with 3% per year for the 1997-98 crisis in east Asia. The broader analysis found no evidence that financial crises had effects on growth that persisted beyond a five-year period.

JEL-codes: O1 O4 (search for similar items in EconPapers)
Date: 2001-06
New Economics Papers: this item is included in nep-dev and nep-ifn
Note: EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (102)

Published as Coe, D.T. and S.J. Kim (eds.) Korean Crisis and Recovery, International Monetary Fund, 2002.

Downloads: (external link)
http://www.nber.org/papers/w8330.pdf (application/pdf)

Related works:
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:nbr:nberwo:8330

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w8330

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by (wpc@nber.org).