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Globalization and Financial Market Contagion: Evidence from Financial Crisis and Natural Disasters

Listed author(s):
  • Asongu Simplice

    ()

    (Yaoundé/Cameroun)

With financial globalization, investors can gain from diversification if returns from financial markets are stable and not correlated. However with volatility spillovers, increase in cross-market correlations exist as a real-effect and are not taken into account for asset allocation and portfolio composition. This chapter assesses financial contagion from two recent trends in the world economy: the global financial crisis and the 2011 Japanese natural disasters (tsunami, earthquake and nuclear crises).

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File URL: http://www.afridev.org/RePEc/agd/agd-wpaper/Globalisation-and-financial-market-contagion.pdf
File Function: Revised version, 2013
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Paper provided by African Governance and Development Institute. in its series Working Papers with number 13/035.

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Length: 27
Date of creation: Sep 2013
Handle: RePEc:agd:wpaper:13/035
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