GLOBALIZATION AND FINANCIAL MARKET CONTAGION: EVIDENCE FROM FINANCIAL CRISIS AND NATURAL DISASTERS
GLOBALIZATION AND FINANCIAL MARKET CONTAGION: EVIDENCE FROM FINANCIAL CRISIS AND NATURAL DISASTERS
Author(s): Simplice A. Asongu
Subject(s): Economy, Business Economy / Management, Financial Markets
Published by: ASERS Publishing
Keywords: globalization; financial crisis; financial market contagion; natural disasters
Summary/Abstract: 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).
Book: Financial Aspects of Recent Trends in the Global Economy - Volume I
- Page Range: 11-32
- Page Count: 22
- Publication Year: 2013
- Language: English
- Content File-PDF