International Portfolio Equity Flows and the Malaysian Financial Crisis

Journal of Contemporary Asia, 30(3): 369-401, 2000

Posted: 26 Jun 2013

Date Written: 2000

Abstract

This paper provides the political economic forces that were unraveling when the speculative attack on the Thai baht drove the contagion catastrophically across East Asia in 1997. While acknowledging the destabilizing effect of volatile exchange rate fluctuations that ensued, this paper discusses the political forces of cronyism and corruption that evolved, alongside the political preference for an expansion in portfolio equity capital accumulation. The paper argues that the expansion in the bubble had masked the quagmire that Malaysia was in when the Asian financial crisis struck.

Keywords: cronyism, corruption, Asian financial crisis, Malaysia

Suggested Citation

Rasiah, Rajah, International Portfolio Equity Flows and the Malaysian Financial Crisis (2000). Journal of Contemporary Asia, 30(3): 369-401, 2000 , Available at SSRN: https://ssrn.com/abstract=2285209

Rajah Rasiah (Contact Author)

University of Malaya ( email )

University of Malaya
Faculty of Economics and Administration
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia
60379673606 (Phone)
60379673719 (Fax)

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