IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Does the contagion effect of the Balance of Payment crisis exist? Ukrainian case

Listed author(s):
  • Vasyl Khomiak

    (Taras Shevchenko National University of Kyiv, Ukraine)

Registered author(s):

    This paper aims at discussing and testing hypotheses about the contagion effect of the Balance of Payment (BoP) crisis on Ukrainian data. A review of the last highlighted discussions about the contagion effect and its impact on economy by applying traditional or spatial econometrics technique is made in paper. The main innovation of this paper is an attempt to test the contagion effect for Ukraine. Observing the evolution of the BoP crisis from the 1990s up to now, it is clear that the contagion effect becomes a main trigger of crisis. In order to measure the impact of the contagion effect on crisis, the exchange market pressure index (EMPI) is calculated for Ukraine and its main partner countries. Estimation output shows that impact from the neighboring countries on Ukraine is much stronger during and after crisis episodes than before. Another approach based on received impulse function after VAR model estimation presents impact of the contagion effect. Insample forecast of the EMP index of Ukraine, based on different specifications, supports an idea about including external factors that help to express influence of the contagion effect. Finally, paper shows that contagion effect is one of the main triggers of the Balance of Payment crisis. Today the BoP crisis could not embrace just one country, and it becomes at least a problem for the whole region.

    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://reaser.eu/RePec/rse/wpaper/R6_13_Khomiak_p151-159.pdf
    Download Restriction: no

    Article provided by Pro Global Science Association in its journal Published in Review of Applied Socio-Economic Research.

    Volume (Year): 6 (2013)
    Issue (Month): 2 (December)
    Pages: 151-159

    as
    in new window

    Handle: RePEc:rse:wpaper:v:6:y:2013:i:2:p:151-159
    Contact details of provider: Postal:
    Bucharest, 6th district, 47 Fabricii Street, Quadra Place, bl.J, fl.1, ap.12

    Web page: http://www.reaser.eu/pgsa/
    Email:


    More information through EDIRC

    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. Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
    2. Babecký, Jan & Havránek, Tomáš & Matějů, Jakub & Rusnák, Marek & Šmídková, Kateřina & Vašíček, Bořek, 2014. "Banking, debt, and currency crises in developed countries: Stylized facts and early warning indicators," Journal of Financial Stability, Elsevier, vol. 15(C), pages 1-17.
    3. Corsetti, Giancarlo & Pericoli, Marcello & Sbracia, Massimo, 2005. "'Some contagion, some interdependence': More pitfalls in tests of financial contagion," Journal of International Money and Finance, Elsevier, vol. 24(8), pages 1177-1199, December.
    Full references (including those not matched with items on IDEAS)

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

    When requesting a correction, please mention this item's handle: RePEc:rse:wpaper:v:6:y:2013:i:2:p:151-159. 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: (Manuela Epure)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.