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Crises in Asia: Historical Perspectives and Implications

Author

Listed:
  • 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.

Suggested Citation

  • Hong, Kiseok & Lee, Jong-Wha & Tang, Hsiao Chink, 2009. "Crises in Asia: Historical Perspectives and Implications," ADB Economics Working Paper Series 152, Asian Development Bank.
  • Handle: RePEc:ris:adbewp:0152
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    References listed on IDEAS

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    Cited by:

    1. Stijn Claessens & M. Ayhan Kose & Marco E. Terrones, 2011. "Recessions and Financial Disruptions in Emerging Markets: A Bird’s Eye View," Central Banking, Analysis, and Economic Policies Book Series,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.
    2. Jauhari Dahalan & Hussin Bin Abdullah & Mohammed Umar, 2016. "Measuring Financial Stress Index for Malaysian Economy," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 942-947.
    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. Chen, Qiwei & Costantini, Mauro & Deschamps, Bruno, 2016. "How accurate are professional forecasts in Asia? Evidence from ten countries," International Journal of Forecasting, Elsevier, vol. 32(1), pages 154-167.
    5. van Bergeijk, P.A.G., 2015. "The heterogeneity of world trade collapses," ISS Working Papers - General Series 606, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    6. 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, vol. 0(4), pages 134-147, December.
    7. van Bergeijk, P.A.G., 2009. "Some economic historic perspectives on the 2009 world trade collapse," ISS Working Papers - General Series 476, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    8. repec:eco:journ1:2017-02-31 is not listed on IDEAS
    9. Fidrmuc, Jarko & Korhonen, Iikka, 2010. "The impact of the global financial crisis on business cycles in Asian emerging economies," Journal of Asian Economics, Elsevier, vol. 21(3), pages 293-303, June.
    10. Hong, Kiseok, 2010. "Fiscal Policy Issues in Korea after the Current Crisis," ADBI Working Papers 225, Asian Development Bank Institute.
    11. repec:eee:jebusi:v:93:y:2017:i:c:p:1-14 is not listed on IDEAS
    12. Claessens, Stijn & Ayhan Kose, M. & Terrones, Marco E., 2010. "The global financial crisis: How similar? How different? How costly?," Journal of Asian Economics, Elsevier, pages 247-264.
    13. Zhang, Wenlang & Zhang, Zhiwei & Han, Gaofeng, 2010. "How does the US credit crisis affect the Asia-Pacific economies?--Analysis based on a general equilibrium model," Journal of Asian Economics, Elsevier, vol. 21(3), pages 280-292, June.
    14. Auer, Benjamin R. & Schuhmacher, Frank, 2016. "Do socially (ir)responsible investments pay? New evidence from international ESG data," The Quarterly Review of Economics and Finance, Elsevier, vol. 59(C), pages 51-62.
    15. Dimitras, Augustinos I. & Kyriakou, Maria I. & Iatridis, George, 2015. "Financial crisis, GDP variation and earnings management in Europe," Research in International Business and Finance, Elsevier, vol. 34(C), pages 338-354.
    16. Gupta, Souvik & Miniane, Jacques, 2009. "Recessions and Recoveries in Asia: What Can the Past Teach Us about the Present Recession?," ADBI Working Papers 150, Asian Development Bank Institute.
    17. Kiseok Hong, 2010. "Fiscal Policy Issues in Korea after the Current Crisis," Macroeconomics Working Papers 22754, East Asian Bureau of Economic Research.
    18. Hong, Kiseok & Tang, Hsiao Chink, 2012. "Crises in Asia: Recovery and policy responses," Journal of Asian Economics, Elsevier, vol. 23(6), pages 654-668.

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    Keywords

    Recession; Financial Crisis; Credit Crunch; Asia;

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