Document Type

Journal article

Source Publication

Asian Affairs: An American Review

Publication Date

1-1-2010

Volume

37

Issue

4

First Page

211

Last Page

231

Keywords

Asian economies, China, financial contagion, Japan, subprime crisis

Abstract

When the subprime-induced financial crisis broke out in the U.S. housing sector in the summer of 2007 and mushroomed into a global financial crisis by September 2008, it was widely believed that the Asian economies, especially the “big four”—Japan, China, South Korea, and India—would remain largely immune from the worst of the crisis. However, this assumption has proven to be false. All four countries have felt the negative impact of the financial contagion—albeit differently. Whereas China and India have been moderately impacted, Japan and South Korea have experienced heightened financial instability, sharp economic contraction, and a deep recession. What explains the big four's vulnerability to the crisis, and why have Japan and South Korea been affected more negatively than China and India? How have the four countries responded to the crisis, and what can they do to further insulate their economies from the vagaries of the global financial markets? In this article, the author addresses these interrelated issues.

DOI

10.1080/00927678.2010.520576

Print ISSN

00927678

E-ISSN

19401590

Publisher Statement

Copyright © Taylor & Francis Inc. Oct-Dec 2010

Access to external full text or publisher's version may require subscription.

Full-text Version

Accepted Author Manuscript

Recommended Citation

Sharma, S. D. (2010). Japan, China, South Korea, and India: why no immunity from the subprime credit crisis? Asian Affairs: An American Review, 37(4), 211-231. doi: 10.1080/00927678.2010.520576