An Empirical Investigation into the Growing Global Financial Implications of China

Since the great depression of the 1930s, a well-known global financial crisis (GFC) started in mid-2017 in the US, which was a serious worldwide financial crisis considered by many economists to have been the most severe global economic crisis comparing to the one in 1930s. The stock markets became highly volatile, as the GFC had worsen by the late-2018.

First, we investigated effects of the GFC in the US to several countries separately for 3 periods, the pre-GFC, during-GFC, and post-GFC. Countries included for this research is the US, Japan, Mexico, and France. We used volatility index (VIX) of each countries’ representative stock market for showing effects of the GFC. S&P500 VIX for the US, Nikkei VIX for Japan, price VIX for Mexico, and CAC 40 VIX for France. Time Span for pre-GFC, during-GC, and post-GFC are Jan 2005-May 2007, Jun 2007-May 2009, and Jun 2009-Jun 2011 respectively. Due to difficulties of gathering data and time span requirements, we choose three countries other than the US, each countries as a representative for their located continent.