Financial contagion and the real economy

Research output: Contribution to journalArticle

142 Citations (Scopus)

Abstract

This paper studies the spread of the Global Financial Crisis of 2007-2009 from the financial sector to the real economy by examining ten sectors in 25 major developed and emerging stock markets. The analysis tests different channels of financial contagion across countries and sectors and finds that the crisis led to an increased co-movement of returns among financial sector stocks across countries and between financial sector stocks and real economy stocks. The results demonstrate that no country and sector was immune to the adverse effects of the crisis limiting the effectiveness of portfolio diversification. However, there is clear evidence that some sectors in particular Healthcare, Telecommunications and Technology were less severely affected by the crisis. © 2011 Elsevier B.V.
Original languageEnglish
Pages (from-to)2680-2692
JournalJournal of Banking and Finance
Volume36
Issue number10
DOIs
Publication statusPublished - 2012

Fingerprint Dive into the research topics of 'Financial contagion and the real economy'. Together they form a unique fingerprint.

Cite this