TY - JOUR
T1 - Crisis and creative destruction
T2 - Cases of Korean and Japanese stock markets
AU - Takemori, Shumpei
AU - Wada, Kenji
N1 - Funding Information:
The authors appreciate Takato Hiraki, Atsushi Maki and anonymous referee for their very detailed comments and suggestions. The authors also thank Kazumi Asako, Tokuo Iwaisako, Takashi Kaneko, Satoru Kano, Jong Wha Lee, Guido Tabellini, Naoyuki Yoshino, and Tsutomu Watanabe for their helpful comments. Akihito Toda was an excellent research assistant and Kaori Nogami provided generous data support. The first author appreciates the Ministry of Culture for its financial support (Keio University COE fund). The second author appreciates Keio University for its always generous financial support. The paper was written while the first author was visiting Institute for Economic and Social Studies for East Asia (ISESAO), Bocconi University.
PY - 2003/12
Y1 - 2003/12
N2 - 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.
AB - 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.
KW - Asian currency crisis
KW - IT revolution
KW - JASDAQ
KW - Japanese economic recession
KW - KOSDAQ
KW - KOSPI
KW - TOPIX
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U2 - 10.1007/s10690-005-4237-8
DO - 10.1007/s10690-005-4237-8
M3 - Article
AN - SCOPUS:23944443324
SN - 1387-2834
VL - 10
SP - 301
EP - 317
JO - Asia-Pacific Financial Markets
JF - Asia-Pacific Financial Markets
IS - 4
ER -