Revista Egitania Sciencia - Volume 17 | ARTICLE

Title: FINANCIAL GLOBALIZATION, STOCK MARKET CRASHES AND FINANCIAL CONTAGION: A LITERATURE REVIEW

Author: Vítor Manuel de Sousa Gabriel (vigab@ipg.pt), José Ramos Pires Manso (pmanso@ubi.pt)

Publication: Revista Egitania Sciencia - Volume 17

Abstract:
Developing a literature review and an analysis of financial data, in this study we address the issue of globalization of financial markets and their causes and we analyze the specifics of the major stock market crashes. Then, we address the issue of contagion and spillovers across stock markets, analyzing concepts and the main transmission channels (commercial, financial and pure channels).
Financial globalization helps to explain the closeness of financial markets, but also to create propitious conditions for worldwide contagion, penalizing the global financial economic stability, which makes the need to rethink the international financial system architecture.


Keywords: Financial Globalization, stock market crashes, contagion




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