Contagion and Capital Market Integration in Asia: Historical and Contemporary Evidence

Nathan Sussman, Yishay Yafeh

Research output: Contribution to journalArticlepeer-review


We compare sovereign debt yields in the nineteenth century and today. Using data on nineteenth century Japanese government bonds, and on Korean sovereign debt today we show that foreign investors both then and now use summary indicators to evaluate country risk (the Gold Standard then, IMF packages today). However, "contagion" today is more common than in the past. Events in nineteenth century China hardly caused fluctuations in Japanese yields although capital markets were highly integrated. By contrast, minor events in Asia or Latin America had significant effects on Korean yields in recent years.
Original languageAmerican English
Pages (from-to)391-417
Number of pages27
JournalSeoul Journal of Economics
Issue number4
StatePublished - 1 Dec 1999


  • Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
  • Current Account Adjustment; Short-term Capital Movements
  • Economic History: Financial Markets and Institutions: Asia including Middle East


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