Examining the Concept of Contagion for Developed and Developing Countries: The Case of the 2008 Crisis

In the study, effect of 2008 Global Financial Crisis on stock markets was investigated with empirical methods. The sensitivities market indices against CPI, CDS premium and 10-Year Bond Yield were estimated for pre-crisis post-crisis periods, results compared between developed developing countries. findings show that affected countries its severity sphere influence. it determined sensitivity some (such as Italy Japan) to S&P500 index increased in general after crisis. addition, is seen these are vulnerable US cannot isolate themselves from negative conditions crisis stemming USA.