IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v50y2014i6p209-228.html
   My bibliography  Save this article

Output Recovery after Financial Crises: An Empirical Study

Author

Listed:
  • Chao Wan
  • Yuying Jin

Abstract

In this paper, we provide a characterization of output recovery after financial crises. Using data from eighty-one countries (regions) from 1975 to 2008, we first identify 182 currency crises by a modified EMP method and recognize 131 banking crises using the results from literature. With quantitative U-shaped and V-shaped recovery specified, we depict output recovery over the dimensions of output loss and duration and find that emerging markets tend to experience severe crises with speedy recoveries. Finally, we apply survival analysis to study the duration of recovery. The results indicate that certain factors, such as control of private sector credit, the degree of financial openness, and adjustment of the current account deficit, contribute to a speedy recovery after financial crises.

Suggested Citation

  • Chao Wan & Yuying Jin, 2014. "Output Recovery after Financial Crises: An Empirical Study," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 50(6), pages 209-228, November.
    • Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:209-228
    DOI: 10.1080/1540496X.2014.1011936
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2014.1011936
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2014.1011936?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Josef C. Brada & Jan KubÃ­Ä ek & Ali M. Kutan & Vladimír Tomšík, 2015. "Inflation Targeting: Insights from Behavioral Economics," Eastern European Economics, Taylor & Francis Journals, vol. 53(5), pages 357-376, September.
    2. Mingjin Luo & Shenqguan Wang, 2023. "Financialization and sluggish recovery of firms' investment: Global evidence from the 2007–2008 financial crisis," International Finance, Wiley Blackwell, vol. 26(3), pages 344-363, December.
    3. Ryota Nakatani, 2019. "Output Costs of Currency Crisis and Banking Crisis: Shocks, Policies and Cycles," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(1), pages 83-102, March.
    4. Mirzaei, Ali & Al-Khouri, Ritab Salem Farhan, 2016. "The resilience of oil-rich economies to the global financial crisis: Evidence from Kuwaiti financial and real sectors," Economic Systems, Elsevier, vol. 40(1), pages 93-108.
    5. Emre Ozsoz & Mustapha Akinkunmi & Ismail Cagri Ay & Ademola Bamidele, 2017. "How Cbn Confronted The Meltdown: The Global Financial Crisis And The Central Bank Of Nigeria’S Response," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(01), pages 147-161, March.
    6. Halit Gonenc & Silviu Ursu, 2018. "The Asset Growth Effect and Investor Protection in Emerging Markets: The Role of the Global Financial Crisis," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(3), pages 491-507, February.
    7. Han, Heejoon & Kutan, Ali M. & Ryu, Doojin, 2015. "Effects of the US stock market return and volatility on the VKOSPI," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-34.
    8. Jin, Yuying & Luo, Mingjin & Wan, Chao, 2018. "Financial constraints, macro-financing environment and post-crisis recovery of firms," International Review of Economics & Finance, Elsevier, vol. 55(C), pages 54-67.
    9. Brzeszczyński, Janusz & Gajdka, Jerzy & Kutan, Ali M., 2015. "Investor response to public news, sentiment and institutional trading in emerging markets: A review," International Review of Economics & Finance, Elsevier, vol. 40(C), pages 338-352.
    10. Zhang, Dayong & Cao, Hong & Dickinson, David G. & Kutan, Ali M., 2016. "Free cash flows and overinvestment: Further evidence from Chinese energy firms," Energy Economics, Elsevier, vol. 58(C), pages 116-124.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:209-228. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.