Author/Authors
Yalama, Abdullah Eskişehir Osmangazi University - Department of Management, Turkey
Title Of Article
International Financial Contagion: The Role of the UK
شماره ركورد
37350
Abstract
The purpose of this study is to consider the role of the United Kingdom in the effect of transferring the global credit crisis from the United States to Turkey. This study compares the results of the most commonly used contagion models, which are known as Forbes and Rigobon model and Dungey, Fry, Gonzalez-Hermosillo and Martin model. Moreover, this study presents evidence regarding the manner of transmission of the crisis. This study confirmed that there is a strong contagion effect from the United States to Turkey and the United Kingdom. The importance of the United Kingdom in transferring this shock is captured in the DFGM model more accurately than in the FR model. Finally, the global credit crisis is transferred to Turkey through financial linkages rather than trade linkages. The existence and direction of contagion create an opportunity for investors to use international hedging strategies and asset allocation.
From Page
1
NaturalLanguageKeyword
contagion , global credit crisis , DFGM model , FR model
JournalTitle
Bogazici Journal
To Page
16
JournalTitle
Bogazici Journal
Link To Document