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Contagious Asian Crisis: Bank Lending and Capital Inflows

Author

Listed:
  • Saleheen Khan

    (Minnesota State University)

Abstract

This paper presents empirical evidence that bank lending, and capital inflows can explain the severity of the Asian crisis of 1997 above and beyond macroeconomic fundamentals. We find that countries that share Japanese banks as their major lender with Thailand, the first victim in the Asian crisis, tend to experience currency crisis. We also find evidence that link short-term capital inflows to the severity of the Asian crisis.

Suggested Citation

  • Saleheen Khan, 2004. "Contagious Asian Crisis: Bank Lending and Capital Inflows," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 19, pages 519-535.
    • Handle: RePEc:ris:integr:0297
    as

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    References listed on IDEAS

    as
    1. Aaron Tornell, 1999. "Common Fundamentals in the Tequila and Asian Crises," Harvard Institute of Economic Research Working Papers 1868, Harvard - Institute of Economic Research.
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    7. Guillermo A. Calvo & Leonardo Leiderman & Carmen M. Reinhart, 1996. "Inflows of Capital to Developing Countries in the 1990s," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 123-139, Spring.
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    Keywords

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    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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