Crisis and creative destruction

Cases of Korean and Japanese stock markets

Research output: Contribution to journalArticle

Abstract

In this essay, we investigate the contrasting performance of Korean and Japanese stock markets before and after the East Asian currency crisis. The Korean stock markets showed a sharper decline and a faster recovery than the Japanese stock markets. First, we theoretically explain these contrasting movements of stock markets by explicitly modeling and adding some new elements to the idea of IT revolution in Greenwood and Jovanovic (Amer. Econom. Rev. 89, 1999, 116-122). Then we empirically prove that the theoretical model in this paper has some quantitative support by considering the level of monthly stock market capitalization and the return on daily stock index in Korea and Japan.

Original languageEnglish
Pages (from-to)301-317
Number of pages17
JournalAsia-Pacific Financial Markets
Volume10
Issue number4
DOIs
Publication statusPublished - 2005 Aug

Fingerprint

Korean stock market
Japanese stock market
Stock market
Creative destruction
Korea
Asian currency crisis
Japan
Market capitalization
Stock index
Modeling

Keywords

  • Asian currency crisis
  • IT revolution
  • Japanese economic recession
  • JASDAQ
  • KOSDAQ
  • KOSPI
  • TOPIX

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

Crisis and creative destruction : Cases of Korean and Japanese stock markets. / Takemori, Syunpei; Wada, Kenji.

In: Asia-Pacific Financial Markets, Vol. 10, No. 4, 08.2005, p. 301-317.

Research output: Contribution to journalArticle

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