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Financial integration and international risk spillovers

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  • Lee, Dongwon

Abstract

Using static panel regression and dynamic local projection methods, we find that financial integration magnifies the transmission of global financial shocks to emerging market economies with fixed exchange rates, validating the insulation benefits of floating regimes and market segmentation.

Suggested Citation

  • Lee, Dongwon, 2023. "Financial integration and international risk spillovers," Economics Letters, Elsevier, vol. 225(C).
    • Handle: RePEc:eee:ecolet:v:225:y:2023:i:c:s0165176523000745
    DOI: 10.1016/j.econlet.2023.111049
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    Cited by:

    1. Wu, Tao & Sun, Xiaotong & Xu, Xin & Jia, Nanfei & Xuan, Siyuan, 2024. "New evidence of interdependence in forex markets: A connection of connection analysis," International Review of Financial Analysis, Elsevier, vol. 95(PA).

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    More about this item

    Keywords

    Exchange rate regimes; Financial integration; Global financial shocks; Open-economy policy trilemma; Risk spillovers;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance

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