Trade and Financial Contagion in Currency Crises

IMF Working Papers, March 1, 2000

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Trade and Financial Contagion in Currency Crises

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Bibliographic details

• Authors: Ranil M Salgado, Luca A Ricci, Francesco Caramazza
• Published: March 1, 2000
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451847611.001

Authors and Publication

• By Ranil M Salgado, Luca A Ricci, Francesco Caramazza
• March 1, 2000
• IMF Working Papers, Working Paper No. 2000/055
• Pages: 46
• Volume: 2000
• Issue: 055
• DOI: https://doi.org/10.5089/9781451847611.001
• Stock No: WPIEA0552000
• ISBN: 9781451847611
• ISSN: 1018-5941

Research Question and Scope

• Investigates empirically the relevance of external, domestic, and financial weaknesses as well as trade and financial linkages in inducing financial crises.
• Sample consists of 61 emerging market and industrial countries.

Methodology

• Uses a panel probit estimation to assess the significance of economic indicators in inducing financial crises.

Main Findings

• The examined economic indicators are significant for emerging market countries during the Mexican, Asian, and Russian crises.
• Indicators that are highly significant:
  • Vulnerability to international financial spillover (common creditor).
  • Financial fragility (reserve adequacy).
• These indicators appear to explain the apparent regional concentration of the Mexican, Asian, and Russian crises.
• Exchange rate regimes and capital controls do not seem to matter for crisis incidence in the analysis.

Subjects and Keywords

• Subjects: Currency crises, Currency markets, Emerging and frontier financial markets, Exchange rate arrangements, Financial crises, Financial markets, Foreign exchange
• Keywords: balance of payments crisis, contagion, crisis, crisis country, crisis emerging market economies, Currency crises, Currency markets, Emerging and frontier financial markets, emerging market, emerging market crisis, emerging markets, ERM crisis, exchange rate appreciation, Exchange rate arrangements, financial market, Global, market, trade and financial spillovers, WP

Key Statistics and Identifiers (preserved exactly)

• Sample size: 61
• Publication date: March 1, 2000
• Pages: 46
• Volume: 2000
• Issue: 055
• DOI: https://doi.org/10.5089/9781451847611.001
• Stock No: WPIEA0552000
• ISBN: 9781451847611
• ISSN: 1018-5941

Content derived from IMF publication "Trade and Financial Contagion in Currency Crises" (IMF Working Papers 2000/055).

Content in this bundle

• Trade and Financial Contagion in Currency Crises - WP/00/55
  • Trade and Financial Contagion in Currency Crises - WP/00/55 (Markdown version)
  • Trade and Financial Contagion in Currency Crises - WP/00/55 (PDF)