Browse

Growth and Investment in East Asia Before and After the Financial Crisis

Cited 0 time in Web of Science Cited 0 time in Scopus
Authors
Barro, Robert J.; Lee, JongWha
Issue Date
2003-04
Publisher
Institute of Economic Research, Seoul National University
Citation
Seoul Journal of Economics, Vol.16 No.2, pp. 83-118
Keywords
East AsiaFinancial crisisPanel regression
Abstract
In 1997-8, five East Asian countries – Indonesia, Malaysia, South Korea, the Philippines, and Thailand - experienced sharp currency and banking crises. The contraction of real GDP was severe in relation to the previous history and in comparison with five East Asian countries that were less affected by the financial crisis. Recoveries in the five countries were strong in some cases, but it is unclear whether the pre-crisis growth rates will be reattained. Indications for permanently depressed prospects come from the sharp reductions in investment ratios. which have recovered only slightly. and the lowered stock market prices. A panel analysis for a broad group of economies shows that a combined currency and banking crisis typically reduces economic growth over a five-year period by 2% per year. The East Asian experience over the 1997-8 crisis is in general consistent with this stylized pattern. The broader analysis found no evidence that financial crises had effects on growth that persisted beyond a five-year period.
ISSN
1225-0279
Language
English
URI
https://hdl.handle.net/10371/1294
Files in This Item:
Appears in Collections:
College of Social Sciences (사회과학대학)Institute of Economics Research (경제연구소)Seoul Journal of EconomicsSeoul Journal of Economics vol.16(2) (Summer 2003)
  • mendeley

Items in S-Space are protected by copyright, with all rights reserved, unless otherwise indicated.

Browse