Channels of financial contagion

Gavron, Shãna V

Channels of financial contagion

Master Thesis

2004

Publisher

University of Cape Town

Department

School of Management Studies

Faculty

Faculty of Commerce

Abstract

The current contagion literature does not definitely conclude which channels of financial contagion are the most significant in transmitting crises between countries. This paper sets out to fill this gap empirically by determining which contagion channels significantly increase the probability of an incidence of contagion between stock markets. The paper initially establishes the occurrence of contagion across 42 countries during nine economic and/or financial events. It identifies potential channels and classifies them either as channels that spread contagion via weak economic fundamentals, as channels that spread contagion via economic and/or financial links or as channels that spread contagion via investor behaviour.

Description

Includes bibliographical references (leaves. 95-106).

Keywords

Finance

Reference:

Collections

Masters

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