Volatility Spillovers and Contagion During the Asian Crisis: Evidence from Six Southeast Asian Stock Markets

Kanokwan Chancharoenchai, Selahattin Dibooglu

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Abstract

Using a multivariate generalized autoregressive conditional heteroskedasticity (GARCH-M) model, we investigate volatility spillovers in six Southeast Asian stock markets around the time of the 1997 Asian crisis. We focus on interactions with the U.S. market as a world financial market, and with the Japanese market as a regional financial market. We also use bivariate GARCH-M models to examine the behavior of individual markets and their interactions with other markets in the region. All models lend support to the idea of the "Asian contagion," which started in Thailand and rapidly spread to other markets.
Original languageAmerican English
JournalEmerging Markets Finance and Trade
Volume42
DOIs
StatePublished - Apr 1 2006

Disciplines

  • Economics
  • Finance

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