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Japan, China, South Korea and India : why no immunity from the subprime credit crisis?
Asian Affairs: An American Review
  • Shalendra SHARMA, University of San Francisco
Document Type
Journal article
Publication Date
  • Asian economies,
  • China,
  • financial contagion,
  • Japan,
  • subprime crisis

When the subprime-induced financial crisis broke out in the U.S. housing sector in the summer of 2007 and mushroomed into a global financial crisis by September 2008, it was widely believed that the Asian economies, especially the “big four”—Japan, China, South Korea, and India—would remain largely immune from the worst of the crisis. However, this assumption has proven to be false. All four countries have felt the negative impact of the financial contagion—albeit differently. Whereas China and India have been moderately impacted, Japan and South Korea have experienced heightened financial instability, sharp economic contraction, and a deep recession. What explains the big four's vulnerability to the crisis, and why have Japan and South Korea been affected more negatively than China and India? How have the four countries responded to the crisis, and what can they do to further insulate their economies from the vagaries of the global financial markets? In this article, the author addresses these interrelated issues.

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Copyright © Taylor & Francis Inc. Oct-Dec 2010

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Citation Information
Sharma, S. D. (2010). Japan, China, South Korea, and India: why no immunity from the subprime credit crisis? Asian Affairs: An American Review, 37(4), 211-231. doi: 10.1080/00927678.2010.520576