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ID: 165382

Financial Crisis, Stock Market and Economic Growth: Evidence from ASEAN-5 / Samsi, Siti Muliana ; Yusof, Zarinah ; Cheok, Cheong Kee

Siti Muliana Samsi, Cheong Kee Cheok, Zarinah Yusof	Journal Article
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Summary/Abstract

This paper examines the effects of the Asian Financial Crisis (AFC) and Global Financial Crisis (GFC) on economic growth in the ASEAN-5 countries. Indonesia, Malaysia and Thailand were found to be most affected by the AFC but not the GFC. Additionally, for Malaysia and Thailand, real output responded positively and significantly to shocks in the stock market. These findings are consistent with the results that show that the shock in the Kuala Lumpur Stock Exchange has a larger effect on real output than other variables for twenty periods. However, a shock in the Bangkok stock exchange has a higher effect on real output and the effect remained strong until the tenth period. This suggests that the stock market is an important economic growth driver in Malaysia and Thailand.

Key Words

Economic Growth ; Financial Crisis ; Stock Market ; ASEAN-5

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ID: 117676

Synchronisation of ASEAN-5 stock markets with the growth rate c / Teng, Kee Tuan; Yen, Siew Hwa; Chua, Soo Y

Teng, Kee Tuan	Journal Article
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2013.

Summary/Abstract

This study explores the changing direction and degree of financial integration of the emerging economies, People's Republic of China (PRC) and India, with ASEAN-5 and compares it to the developed economies, the US and Japan, in a time-varying framework. The concordance and rolling concordance indices are used to study the cyclical behaviour in the ASEAN-5 stock markets with the economic activity of the emerging and developed economies. This study covers the period between January 1991 and June 2010. One of the more significant findings from this study is that ASEAN-5 stock markets do not react as a whole to external shock from these four trading partners. Each stock market in ASEAN-5 responded differently in terms of direction and degree towards the influences of the economic condition in these emerging and developed economies. The ASEAN-5 stock markets were less correlated with economic activities in emerging economies but were more aligned with economic activities in developed economies. In summary, ASEAN-5 stock market cycles were still more dependent on the developed economies' growth rate cycles.

Key Words

Financial Integration ; ASEAN-5 ; Growth Rate Cycle ; Concordance Index ; Rolling Concordance Index ; F15 ;
F36

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