Financial interdependence or contagion? evidence from a meta-analysis
During the last two decades, the phenomenon of financial contagion has been investigated in numerous pieces of research. In spite of its severe implications for the stability of domestic financial systems as well as potential diversification benefits of international portfolio investment, there has...
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| Format: | Article |
| Language: | English English |
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Statistical Economic and Social Research and Training Centre for Islamic Countries
2019
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| Online Access: | http://irep.iium.edu.my/78386/ http://irep.iium.edu.my/78386/1/Financial%20Interdependence-Meta%20regression%20analysis-Journal%20of%20Econ%20Cooperation.pdf http://irep.iium.edu.my/78386/7/78386_Financial%20interdependence%20or%20contagion-%20Evidence%20from%20a%20meta-analysis_Scopus.pdf |
| _version_ | 1848788601577406464 |
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| author | Zhang, H. C. Mohamad, Azhar Hamid, Zarinah |
| author_facet | Zhang, H. C. Mohamad, Azhar Hamid, Zarinah |
| author_sort | Zhang, H. C. |
| building | IIUM Repository |
| collection | Online Access |
| description | During the last two decades, the phenomenon of financial contagion has been investigated in numerous pieces of research. In spite of its severe implications for the stability of domestic financial systems as well as potential diversification benefits of international portfolio investment, there has yet to be universally agreed conclusion on the relevance of financial contagion. Thus, our current study has been designed to apply the meta-analysis approach to investigate the statistical significance of financial contagion based on past empirical contagion studies. Our meta-analysis concludes that financial contagion is a significant
phenomenon. As implications, policy makers should establish contingent credit lines to ensure the liquidity of financial market during the turbulence time, and portfolio investors should diversify away from the potentially contagious markets. It is suggested that future contagion-based meta-analysis may include contagion studies with different methodologies, as well as meta-regression analysis to provide more insights on the sources of variability in the contagion studies. |
| first_indexed | 2025-11-14T17:43:25Z |
| format | Article |
| id | iium-78386 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T17:43:25Z |
| publishDate | 2019 |
| publisher | Statistical Economic and Social Research and Training Centre for Islamic Countries |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-783862020-02-14T02:39:16Z http://irep.iium.edu.my/78386/ Financial interdependence or contagion? evidence from a meta-analysis Zhang, H. C. Mohamad, Azhar Hamid, Zarinah H61 Theory. Method HG Finance HG4501 Stocks, investment, speculation During the last two decades, the phenomenon of financial contagion has been investigated in numerous pieces of research. In spite of its severe implications for the stability of domestic financial systems as well as potential diversification benefits of international portfolio investment, there has yet to be universally agreed conclusion on the relevance of financial contagion. Thus, our current study has been designed to apply the meta-analysis approach to investigate the statistical significance of financial contagion based on past empirical contagion studies. Our meta-analysis concludes that financial contagion is a significant phenomenon. As implications, policy makers should establish contingent credit lines to ensure the liquidity of financial market during the turbulence time, and portfolio investors should diversify away from the potentially contagious markets. It is suggested that future contagion-based meta-analysis may include contagion studies with different methodologies, as well as meta-regression analysis to provide more insights on the sources of variability in the contagion studies. Statistical Economic and Social Research and Training Centre for Islamic Countries 2019 Article PeerReviewed application/pdf en http://irep.iium.edu.my/78386/1/Financial%20Interdependence-Meta%20regression%20analysis-Journal%20of%20Econ%20Cooperation.pdf application/pdf en http://irep.iium.edu.my/78386/7/78386_Financial%20interdependence%20or%20contagion-%20Evidence%20from%20a%20meta-analysis_Scopus.pdf Zhang, H. C. and Mohamad, Azhar and Hamid, Zarinah (2019) Financial interdependence or contagion? evidence from a meta-analysis. Journal of Economic Cooperation and Development, 40 (1). pp. 79-102. ISSN 1308-7800 https://www.sesric.org/pdf.php?file=ART16121601-2.pdf |
| spellingShingle | H61 Theory. Method HG Finance HG4501 Stocks, investment, speculation Zhang, H. C. Mohamad, Azhar Hamid, Zarinah Financial interdependence or contagion? evidence from a meta-analysis |
| title | Financial interdependence or contagion? evidence from a meta-analysis |
| title_full | Financial interdependence or contagion? evidence from a meta-analysis |
| title_fullStr | Financial interdependence or contagion? evidence from a meta-analysis |
| title_full_unstemmed | Financial interdependence or contagion? evidence from a meta-analysis |
| title_short | Financial interdependence or contagion? evidence from a meta-analysis |
| title_sort | financial interdependence or contagion? evidence from a meta-analysis |
| topic | H61 Theory. Method HG Finance HG4501 Stocks, investment, speculation |
| url | http://irep.iium.edu.my/78386/ http://irep.iium.edu.my/78386/ http://irep.iium.edu.my/78386/1/Financial%20Interdependence-Meta%20regression%20analysis-Journal%20of%20Econ%20Cooperation.pdf http://irep.iium.edu.my/78386/7/78386_Financial%20interdependence%20or%20contagion-%20Evidence%20from%20a%20meta-analysis_Scopus.pdf |