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The Performance of East Asian Economies and Financial Markets since the 1997 Financial Crisis

Author

Listed:
  • Chunchi Wu

    (Syracuse University, USA)

  • Chun-nan Chen

    (National Cheng Kung University, Taiwan, R.O.C)

  • Yan He

    (San Francisco State University, USA)

Abstract

This paper documents the economic and financial recovery of East Asia based on its real GDP, export, currency value and stock performance since the 1997 financial crisis. A macroeconomic model is used to estimate the chain effect of international trade on Asian recovery. It is found that the U.S. economy had a significant impact on the recovery of this region through close international trade relationship. Two major factors appear to explain the recent rapid recovery: (1) strong U.S. economic growth and currency value, and (2) the current account surplus and net inflow in foreign direct investment of crisis-hit countries.

Suggested Citation

  • Chunchi Wu & Chun-nan Chen & Yan He, 2003. "The Performance of East Asian Economies and Financial Markets since the 1997 Financial Crisis," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 6(02), pages 113-140.
    • Handle: RePEc:wsi:rpbfmp:v:06:y:2003:i:02:n:s021909150300102x
    DOI: 10.1142/S021909150300102X
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    References listed on IDEAS

    as
    1. Ricardo Caballero & Arvind Krishnamurthy, 1998. "Emerging Market Crises: An Asset Markets Perspective," Working papers 98-18, Massachusetts Institute of Technology (MIT), Department of Economics.
    2. Jorge A. Chan-Lau & Zhaohui Chen, 1998. "Financial Crisis and Credit Crunch as a Result of Inefficient Financial Intermediation—with Reference to the Asian Financial Crisis," International Finance 9804001, University Library of Munich, Germany, revised 22 Sep 1998.
    3. Romain Wacziarg, 2001. "Measuring the Dynamic Gains from Trade," The World Bank Economic Review, World Bank, vol. 15(3), pages 393-39-429.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Tan Khee Giap & Sasidaran Gopalan & Nursyahida Ahmad, 2018. "Growth Slowdown Analysis for Indonesia’s Subnational Economies: An Empirical Investigation," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 1-36, September.
    2. Nathan Lael Joseph & Thi Thuy Anh Vo & Asma Mobarek & Sabur Mollah, 2020. "Volatility and asymmetric dependence in Central and East European stock markets," Review of Quantitative Finance and Accounting, Springer, vol. 55(4), pages 1241-1303, November.

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    More about this item

    Keywords

    Asian financial crisis; contagion; recovery;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance

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