Determination of Factors Affecting the South East Asian Crisis of 1997 Probit-Logit Panel Regression

Abstract

The economic crisis is an important event that hurts societies. Communication between the market and the authorities is an important factor in economic crisis situations. Because if the communication is established in a healthy way, economic crises in the future may not be repeated. In this context, the chapter deals with the economic crisis of 1997 in the Asian region as part of crisis communication. In the study conducted with Logit method, data belonging to the period 1975-2006 were used. In addition, the variables used frequently in the literature were considered as data set indicators. The results indicate that economic growth, financial credit, and money supply are important indicators affecting the crisis. Indeed, the emergence of the crisis with these variables reveals that there was a communication problem in the Asian region. Considering this experience, it has been suggested that Asia and other countries should care about the communication tools.