As a result of the analyses, it has been determined that trade is an effective channel for transferring volatility.
📌 3 Key Takeaways
🎯
Objective & Hypothesis:This study has been written to examine the channels through which the global economic crises spread to the markets of countries with growing economies like Turkey.
📊
Key Findings & Data:According to data from the Turkish Statistical Institute (TÜİK), stock market index data of the seven countries with high trade volume (Germany, France, UK, Russia, China, United States of Amerika and Italy) and of the seven countries with low trade volume (Botswana, Gabon, Kenya, Southern Cyprus, Iceland, New Zealand and Jamaica) between 2005 and 2011 was used.
💡
Conclusion & Impact:As a result of the analyses, it has been determined that trade is an effective channel for transferring volatility.
This study has been written to examine the channels through which the global economic crises spread to the markets of countries with growing economies like Turkey. According to data from the Turkish Statistical Institute (TÜİK), stock market index data of the seven countries with high trade volume (Germany, France, UK, Russia, China, United States of Amerika and Italy) and of the seven countries with low trade volume (Botswana, Gabon, Kenya, Southern Cyprus, Iceland, New Zealand and Jamaica) between 2005 and 2011 was used. With the data used, volatility transfers occurred during the 2007-2008 crisis period were tried to be introduced with the aid of the multivariate GARCH models. As a result of the analyses, it has been determined that trade is an effective channel for transferring volatility.
ÇEMREK, F., POLAT, H. (2021). THE IMPACT OF CROSS-COUNTRY TRADE RELATIONS on THE CONTAGION of GLOBAL FINANCIAL CRISIS: THE CASE OF TURKEY. Eskişehir Technical University Journal of Science and Technology A - Applied Sciences and Engineering, Cilt: 22 - Sayı: 1, 85–98. https://ajindex.com/articles/196571
Modelski G, Thompson WR. Seapower in global politics. Springer 1988: 1494–1993
Modelski G, Thompson WR. Seapower in global politics. Springer 1988: 1494–1993
Gramsci A. The philosophy of praxis, Selections from the prison notebooks of Antonio Gramsci. London, UK, The Electric Book Company Ltd. 1971
Gramsci A. The philosophy of praxis, Selections from the prison notebooks of Antonio Gramsci. London, UK, The Electric Book Company Ltd. 1971
Giddens A. The Consequences of Modernity. Cambridge Polity 1990; 53(83): 245-260
Giddens A. The Consequences of Modernity. Cambridge Polity 1990; 53(83): 245-260
Eichengreen B, Rose AK, Wyplosz, C. Contagious currency crises. National Bureau of Economic Research 1996: 5681
Eichengreen B, Rose AK, Wyplosz, C. Contagious currency crises. National Bureau of Economic Research 1996: 5681
Kaminsky GL, Reinhart CM. Financial crises in Asia and Latin America: Then and now. The American Economic Review 1998: 88(2), 444-448
Kaminsky GL, Reinhart CM. Financial crises in Asia and Latin America: Then and now. The American Economic Review 1998: 88(2), 444-448
Forbes KJ, Rigobon R. No Contagion, only interdependence: measuring stock market comovements. The Journal of Finance 2002: 57(5), 2223-2261
Forbes KJ, Rigobon R. No Contagion, only interdependence: measuring stock market comovements. The Journal of Finance 2002: 57(5), 2223-2261
Dungey M, Fry R, González-Hermosillo B, Martin VL. Empirical Modelling of contagion: A review of methodologies. Quantitative Finance 2005: 5(1), 9-24
Dungey M, Fry R, González-Hermosillo B, Martin VL. Empirical Modelling of contagion: A review of methodologies. Quantitative Finance 2005: 5(1), 9-24
Dungey M, Gajurel D. Equity market contagion during the global financial crisis: Evidence from the World's Eight largest economies. Economic Systems 2014: 38(2), 161-177
Dungey M, Gajurel D. Equity market contagion during the global financial crisis: Evidence from the World's Eight largest economies. Economic Systems 2014: 38(2), 161-177
Glick R, Rose AK. Contagion and Trade: Why are currency crises regional?. Journal of International Money and Finance 1999: 18(4), 603-617
Glick R, Rose AK. Contagion and Trade: Why are currency crises regional?. Journal of International Money and Finance 1999: 18(4), 603-617
Mitton T. A cross-firm analysis of the impact of corporate governance on the East Asian financial crisis. Journal