The Impact of the US Subprime Mortgage Crisis on the World and East Asia: Through Analyses of Cross-border Capital Movements
AbstractThe world economy is currently suffering a global financial and economic crisis that has become severe since the second half of 2008. This global financial situation was triggered by?the advent of the subprime mortgage crisis in the United States that became apparent in mid-2007.?Europe was the first area affected, thereafter its contagion spread to the rest of the world. East Asia?did not escape. The nature of the current global financial crisis is unprecedented in terms of (1) the?scale of the problems in the financial sector (particularly in the United States and Europe), (2) the?depth and speed of contagion worldwide (through financial sector and trade linkages), and (3) the?severity of the recession (particularly in emerging market economics, small countries, and East?Asia). This paper analyzes, mainly, cross-border capital movements by looking at the pre-crisis?features of the United States as the crisis hypocenter and its relationships with other countries.?Detailed observations are presented on cross-border investment in stocks and debt securities, as well?as banking activities. The paper then sheds light on the impact of the subprime mortgage crisis on?cross-border capital movements in the United States, the United Kingdom, and East Asia. Other?performance indicators such as exchange rates, economic growth and international trade are also?discussed in the case of East Asia. The paper examines several challenges posed for East Asia by?the crisis.
Download InfoIf 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.
Bibliographic InfoPaper provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Working Papers with number d013.
Date of creation: 2009
Date of revision:
Contact details of provider:
Postal: The ASEAN Secretariat Mezzanine Floor, 70A Jl.Sisingamangaraja, Jakarta 12110
Web page: http://www.eria.org/
More information through EDIRC
Subprime mortgage; Global financial and economic crisis; Capital flows; International financial center.;
Find related papers by JEL classification:
- G1 - Financial Economics - - General Financial Markets
- G2 - Financial Economics - - Financial Institutions and Services
- F2 - International Economics - - International Factor Movements and International Business
- F3 - International Economics - - International Finance
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Sayuri Shirai, . "Cross-Border Investment and the Global Financial Crisis in the Asia-Pacific Region," MPDD Working Paper Series WP/09/04, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
- Shirai, Sayuri, 2009.
[Global Economic Crisis and Movements of Cross-Border Capital Flows ―Implicatio," MPRA Paper 18619, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hiroshi Okasaki).
If references are entirely missing, you can add them using this form.