The Effects of Currency Crises in Emerging Markets on the Industrial Sector: An Alternative Regime-Shifting Approach

Yilmazkuday, Hakan

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The Effects of Currency Crises in Emerging Markets on the Industrial Sector: An Alternative Regime-Shifting Approach

Emerging Markets Finance and Trade, Vol. 7, No. 1, pp. 1-4, 2008

33 Pages Posted: 22 Jun 2007 Last revised: 26 May 2010

See all articles by Hakan Yilmazkuday

Hakan Yilmazkuday

Florida International University (FIU) - Department of Economics

Date Written: January 1, 2008

Abstract

We analyze the effects of the currency crises on the industrial sectors of Korea, Turkey and Czech Republic. We find that the interval for the effect of the currency crisis on the industrial sector to disappear is around four years for Korea after the 1997 currency crisis; it is around five and seven years for Turkey following the 1994 and 2001 currency crises, respectively; and it is around five years for Czech Republic following the 1997 currency crisis. For all three countries, the effects of the currency crises on the industrial sector disappear in a longer interval than the effect of any other economic issue does.

Keywords: Currency Crisis, Regime-Shifts, Industrial Production Cycles, Turkey, Korea, Czech Republic

JEL Classification: E32, E44, F31

Suggested Citation: Suggested Citation

Yilmazkuday, Hakan, The Effects of Currency Crises in Emerging Markets on the Industrial Sector: An Alternative Regime-Shifting Approach (January 1, 2008). Emerging Markets Finance and Trade, Vol. 7, No. 1, pp. 1-4, 2008, Available at SSRN: https://ssrn.com/abstract=995559