Globalization and Financial Market Contagion: Evidence from Financial Crisis and Natural Disasters

Published in: Financial Aspects of Recent Trends in the Global Economy. ASERS Publication. (April, 2013).

27 Pages Posted: 10 Sep 2014 Last revised: 1 Apr 2015

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Date Written: September 8, 2013

Abstract

With financial globalization, investors can gain from diversification if returns from financial markets are stable and not correlated. However with volatility spillovers, increase in cross-market correlations exist as a real-effect and are not taken into account for asset allocation and portfolio composition. This chapter assesses financial contagion from two recent trends in the world economy: the global financial crisis and the 2011 Japanese natural disasters (tsunami, earthquake and nuclear crises).

Suggested Citation

Asongu, Simplice, Globalization and Financial Market Contagion: Evidence from Financial Crisis and Natural Disasters (September 8, 2013). Published in: Financial Aspects of Recent Trends in the Global Economy. ASERS Publication. (April, 2013). . Available at SSRN: https://ssrn.com/abstract=2493406 or http://dx.doi.org/10.2139/ssrn.2493406

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

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