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Crises in Asia: Historical Perspectives and Implications

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  • Hong, Kiseok

    (Ewha Womans University)

  • Lee, Jong-Wha

    (Asian Development Bank)

  • Tang, Hsiao Chink

    (Asian Development Bank)

Abstract

The paper analyzes the stylized features of historical crisis episodes for 21 developing Asian economies over 1961–2007. The paper finds that while there is substantial diversity, on average, recessions and financial downturns are more frequent, longer lasting, and more severe in Asia than in the Organisation for Economic Co-operation and Development countries. The paper also finds that the likelihood and severity of a recession tends to increase when it is associated with credit crunches or stock market crashes. Severe financial downturns or recessions in the global economy are often coupled with financial crises or recessions in Asia. In view of the current global crisis and severe financial downturns, Asian economies are expected to experience a severe recession in 2009.

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File URL: http://www.adb.org/Documents/Working-Papers/2009/Economics-WP152.pdf
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Bibliographic Info

Paper provided by Asian Development Bank in its series ADB Economics Working Paper Series with number 152.

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Length: 32 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:ris:adbewp:0152

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Related research

Keywords: Recession; Financial Crisis; Credit Crunch; Asia;

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References

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  4. Claessens, Stijn & Kose, Ayhan & Terrones, Marco E., 2008. "What Happens During Recessions, Crunches and Busts?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7085, C.E.P.R. Discussion Papers.
  5. Reinhart, Carmen M. & Rogoff, Kenneth S., 2009. "The Aftermath of Financial Crises," Scholarly Articles 11129155, Harvard University Department of Economics.
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  9. Harding, Don & Pagan, Adrian, 2002. "Dissecting the cycle: a methodological investigation," Journal of Monetary Economics, Elsevier, Elsevier, vol. 49(2), pages 365-381, March.
  10. Kim, Soyoung & Lee, Jong-Wha & Park, Cyn-Young, 2009. "Emerging Asia: Decoupling or Recoupling," Working Papers on Regional Economic Integration, Asian Development Bank 31, Asian Development Bank.
  11. Gerhard Bry & Charlotte Boschan, 1971. "Cyclical Analysis of Time Series: Selected Procedures and Computer Programs," NBER Books, National Bureau of Economic Research, Inc, National Bureau of Economic Research, Inc, number bry_71-1.
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Citations

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Cited by:
  1. Fidrmuc, Jarko & Korhonen, Iikka, 2010. "The impact of the global financial crisis on business cycles in Asian emerging economies," Journal of Asian Economics, Elsevier, Elsevier, vol. 21(3), pages 293-303, June.
  2. van Bergeijk, P.A.G., 2009. "Some economic historic perspectives on the 2009 world trade collapse," ISS Working Papers - General Series, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague 476, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  3. Dilip K. Das, 2012. "How did the Asian economy cope with the global financial crisis and recession? A revaluation and review," Asia Pacific Business Review, Taylor & Francis Journals, vol. 18(1), pages 7-25, January.
  4. Yu-Hau Hu & Shun-Jen Hsueh, 2013. "A Study of yhe Nonlinear Relationships among the U.S. and Asian Stock Markets during Financial Crises," Journal for Economic Forecasting, Institute for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 134-147, December.
  5. Kiseok Hong, 2010. "Fiscal Policy Issues in Korea after the Current Crisis," Macroeconomics Working Papers 22754, East Asian Bureau of Economic Research.
  6. Gupta, Souvik & Miniane, Jacques, 2009. "Recessions and Recoveries in Asia: What Can the Past Teach Us about the Present Recession?," ADBI Working Papers, Asian Development Bank Institute 150, Asian Development Bank Institute.
  7. Claessens, Stijn & Ayhan Kose, M. & Terrones, Marco E., 2010. "The global financial crisis: How similar? How different? How costly?," Journal of Asian Economics, Elsevier, Elsevier, vol. 21(3), pages 247-264, June.
  8. Hong, Kiseok, 2010. "Fiscal Policy Issues in Korea after the Current Crisis," ADBI Working Papers, Asian Development Bank Institute 225, Asian Development Bank Institute.
  9. Stijn Claessens & M. Ayhan Kose & International Monetary Fund & Marco E. Terrones & International Monetary Fund, 2011. "Recessions and Financial Disruptions in Emerging Markets: A Bird’s Eye View," Central Banking, Analysis, and Economic Policies Book Series, Central Bank of Chile, in: Luis Felipe Céspedes & Roberto Chang & Diego Saravia (ed.), Monetary Policy under Financial Turbulence, edition 1, volume 16, chapter 4, pages 059-104 Central Bank of Chile.
  10. Hong, Kiseok & Tang, Hsiao Chink, 2012. "Crises in Asia: Recovery and policy responses," Journal of Asian Economics, Elsevier, Elsevier, vol. 23(6), pages 654-668.

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