Analysis of the effect of international financial crises on international financial markets

While geographic borders form an indistinct line in the market structure where economic and financial integrations are formed in the new world order, national and international markets offer a more embedded view. While this structure which explains the existence of a more sensitive sensibility between markets creates new opportunities in economic and financial improvement for underdeveloped countries, it poses a significant threat in the existence of market conditions due its sensitive sensibility. Financial crises which arise suddenly and unexpectedly as a result of some unanticipated problems constitute the most significant ones of these threats.This study aims to analyse the effects of international financial crises on international financial markets in proximity and development perspectives based on financial integration, globalization, and causality, determine crisis models in different combinations, and create future projections. In this respect, 6 financial crises which occurred in 20-year?s time between 1990 and 2010 have been examined based on the proximity and development criteria in 14 countries perspective. This study in which models defining the crises which have already happened are formed and current intermarket co-integration status is determined, causality relations in intermarket relations have been examined includes scientific anticipations regarding what kind of a reaction a possible shock in the future will find in national markets. We have made use of several econometric models from regression and correlation analysis to Granger Causality Test, from Co-Integration Analysis to VAR analysis, from variance research to Impulse-Response Analysis among the methods which constitute a basis in the determination of such relations in international literature.Keywords: Financial Crisis, Vector Autoregressive Model (VAR), Co-integration, Impulse-Response Analysis, Granger Causality Test