Financial interdependence and contagion : the transmission of financial stress from the United States to Latin America

In this paper I analyse how has the financial interdependence and contagion among LAC6 countries and the United States changed in the last 15 years, as well as the transmission channels of these cross-market linkages (measured with financial stress indexes). Results show that, in average across the full sample and the whole period 2000-2014, around 34% of the financial stress in the United States has been transmitted to LAC-6 countries. However, after a careful break down, it is noted that this financial interdependence is much larger with Chile, Colombia, Mexico, and Peru (ranges between 40% and 49%), and that a significant increase in the transmission of stress occurred during the 2008 crisis. As for the transmission channels, both trade and financial linkages have a significant impact in the transmission of financial stress from the United States. Nonetheless, the effect of trade linkages is always larger than the one of financial linkages, pointing to this mechanism as the main channel of financial interdependence and contagion between LAC-6 countries and the United States during the last 15 years.

• Autores: Pareja Restrepo, Laura
• Fecha de publicación: 2016
• Institución: Universidad de los Andes
• Repositorio: Séneca: repositorio Uniandes
• Idioma: spa
• OAI Identifier: oai:repositorio.uniandes.edu.co:1992/13242
• Acceso en línea: http://hdl.handle.net/1992/13242
• Palabra clave: Crisis financiera - Investigaciones - Estados Unidos; Crisis financiera - Investigaciones - América Latina; Interdependencia económica - Investigaciones - América Latina; Economía
• Rights: openAccess
• License: http://creativecommons.org/licenses/by-nc-nd/4.0/