Advanced Search
MyIDEAS: Login to save this article or follow this journal

Inelasticity Of Emerging Economies To Financial Crisis

Contents:

Author Info

  • Sudhakar Kota

    ()
    (Associate Professor, Skyline University College, Sharjah, UAE)

  • Saigeeta Kukunuru

    ()
    (Assistant Professor, Abu Dhabi University, Abu Dhabi, UAE)

Registered author(s):

    Abstract

    The global financial crisis is attributed to a large scale lending, to subprime borrowers by the small, medium and large private banks, a phenomenon observed in USA. The crisis spread to European countries and the rest of the world. Emerging countries were not totally engulfed by the financial crisis, however shocks were felt not because of the subprime borrowing defaults but were affected due to slump in inward foreign capital flows and fall in exports. Thanks to their well regulated financial system and large domestic market size that induced sustained demand in the market even in the face of global recession. The financial system has provided adequate liquidity generated from internal sources and sustained the economic growth. This paper explores the prudential policies that protected emerging markets from the severe impact of global recession through secondary research. The paper probes into some of the banking policy issues that helped India to thwart the effects of global recession and also evaluates the possible lessons that can be learnt and considered reliable for advance countries especially US. Enough literature is available on lessons to be learnt from the global recession and how emerging countries can avoid financial crisis. This paper looks into the other aspect that developed countries may also learn few lessons from emerging countries. In this respect the paper focuses on evaluating various banking practices adopted by emerging countries and remained resilient to the global crisis. The case of Indian conservative banking approach which enabled its financial market to manage the impact is a strong case to advocate this approach.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.globalresearch.com.my/journal/business_v03n01/0008_Article_290_Final_PG101_121.pdf
    Download Restriction: no

    File URL: http://www.globalresearch.com.my/journal/business_v03n01/business_v03n01.htm
    Download Restriction: no

    Bibliographic Info

    Article provided by Global Research Agency in its journal Journal of Global Business and Economics.

    Volume (Year): 3 (2011)
    Issue (Month): 1 (July)
    Pages: 101-121

    as in new window
    Handle: RePEc:grg:01biss:v:3:y:2011:i:1:p:101-121

    Contact details of provider:
    Web page: http://www.globalresearch.com.my/journal.htm

    Related research

    Keywords: Economics; Emerging markets; Global financial crisis;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Charles Kahn & George Pennacchi & Ben Sopranzetti, 2001. "Bank Consolidation and Consumer Loan Interest Rates," Center for Financial Institutions Working Papers 01-14, Wharton School Center for Financial Institutions, University of Pennsylvania.
    2. Prager, Robin A & Hannan, Timothy H, 1998. "Do Substantial Horizontal Mergers Generate Significant Price Effects? Evidence from the Banking Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 46(4), pages 433-52, December.
    3. Penas, Maria Fabiana & Unal, Haluk, 2004. "Gains in bank mergers: Evidence from the bond markets," Journal of Financial Economics, Elsevier, vol. 74(1), pages 149-179, October.
    4. Jack Boorman, 2009. "The Impact of the Financial Crisis on Emerging Market Economies: The Transmission Mechanism, Policy Response and Lessons," Papers Presented at Global Meetings of the Emerging Markets Forum 2009crisisimpact, Emerging Markets Forum.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:grg:01biss:v:3:y:2011:i:1:p:101-121. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (editor).

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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