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The systemic financial importance of emerging powers

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  • Armijo, Leslie Elliott
  • Mühlich, Laurissa
  • Tirone, Daniel C.

Abstract

Economic turmoil in advanced industrial economies since the 2008–9 crisis has intensified perceptions of rising global multipolarity. Several indices of the relative material capabilities of countries exist, yet few address a state's potential for financial influence abroad. We analyze indicators of a country's importance as a financial asset owner and participant in globalized financial markets, examining 180 countries during 1995–2010. The United States displays a high and stable systemic importance. An increase in the share of the BRICS countries, especially China, mirrors a strong decline in the global weight of Japan (still a senior financial power), and to a lesser extent, most other advanced industrial countries, with the exception of Germany.

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  • Armijo, Leslie Elliott & Mühlich, Laurissa & Tirone, Daniel C., 2014. "The systemic financial importance of emerging powers," Journal of Policy Modeling, Elsevier, vol. 36(S1), pages 67-88.
    • Handle: RePEc:eee:jpolmo:v:36:y:2014:i:s1:p:s67-s88
    DOI: 10.1016/j.jpolmod.2013.10.009
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    1. Mikhail Stolbov, 2017. "Assessing systemic risk and its determinants for advanced and major emerging economies: the case of ΔCoVaR," International Economics and Economic Policy, Springer, vol. 14(1), pages 119-152, January.
    2. Stolbov, Mikhail, 2014. "The causal linkages between sovereign CDS prices for the BRICS and major European economies," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 8, pages 1-43.
    3. Fang, Lei & Cheng, Jiang & Su, Fang, 2019. "Interconnectedness and systemic risk: A comparative study based on systemically important regions," Pacific-Basin Finance Journal, Elsevier, vol. 54(C), pages 147-158.
    4. Mikael Wigell, 2016. "Conceptualizing regional powers’ geoeconomic strategies: neo-imperialism, neo-mercantilism, hegemony, and liberal institutionalism," Asia Europe Journal, Springer, vol. 14(2), pages 135-151, June.
    5. Marina Zucker‐Marques & Pedro Perfeito da Silva, 2022. "The Role of Institutions: A Cross‐country Analysis of Renminbi Trading in Foreign Exchange Markets," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(3), pages 42-74, May.
    6. Zucker Marques, Marina & Mühlich, Laurissa & Fritz, Barbara, 2023. "Unequal access to The Global Financial Safety Net: An index for the quality of crisis finance," Discussion Papers 2023/4, Free University Berlin, School of Business & Economics.
    7. Mohd Fairuz Md. Salleh & Wan Sallha, Yusoff & Norida Basnan, 2016. "Does Smart Power of ASEAN Cooperation Influence Firm Value? Evidence from Geopolitical Perspective," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(3), pages 83-97, JUNE.
    8. Mohd Fairuz Md. Salleh & Wan Sallha, Yusoff & Norida Basnan, 2016. "Does Smart Power of ASEAN Cooperation Influence Firm Value? Evidence from Geopolitical Perspective," EuroEconomica, Danubius University of Galati, issue 3(12), pages 83-97, JUNE.

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