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Currency Crisis Transmission Through Trade Channel: Asian and Mexican Crises Revisited

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  • Khan, Saleheen

    (Minnesota State University)

Abstract

This paper provides support to the existing empirical evidence that trade linkages play an important role in explaining the magnitude of currency crises, in addition to macroeconomic fundamentals and stock market dynamics. We apply pooled regression analysis in an attempt to better understand the effect of trade on the Asian Crises period of 1997~1998 and the Mexican Peso Crisis of 1994~1995. Our empirical results show that trade variables explain the aforementioned crises and their contagion. We also find that the magnitude of the trade channel was similar in both cases.

Suggested Citation

  • Khan, Saleheen, 2018. "Currency Crisis Transmission Through Trade Channel: Asian and Mexican Crises Revisited," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 33(4), pages 818-840.
    • Handle: RePEc:ris:integr:0760
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    References listed on IDEAS

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    Cited by:

    1. Ain Shahrier, Nur, 2022. "Contagion effects in ASEAN-5 exchange rates during the Covid-19 pandemic," The North American Journal of Economics and Finance, Elsevier, vol. 62(C).

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    More about this item

    Keywords

    Currency crises; Contagion; Trade;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F30 - International Economics - - International Finance - - - General
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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