The Impact of the Global Financial Crisis on Emerging and Newly Industrialized Asia

Abstract

The paper analyzes the impact of the global financial crisis on capital flows, financial markets and economic activity in Asia and attempts to explain why Asian markets were hit hard despite relatively strong fundamentals, and why the subsequent recovery was relatively quick. The openness of a country to trade and finance and the degree of integration into international financial markets are shown to be important determinants of the swings in economic activity and capital flows during both the reversal and recovery phases. It also discusses the role played by macroeconomic and financial policies in the recovery and concludes with some lessons from Asia's experience.

Citation

Bunda, I., Lall, S. and Sharma, S. (2011), "The Impact of the Global Financial Crisis on Emerging and Newly Industrialized Asia", Batten, J.A. and Szilagyi, P.G. (Ed.) The Impact of the Global Financial Crisis on Emerging Financial Markets (Contemporary Studies in Economic and Financial Analysis, Vol. 93), Emerald Group Publishing Limited, Leeds, pp. 127-153. https://doi.org/10.1108/S1569-3759(2011)0000093006