Revisiting the Impact of Financial Crisis on the ASEAN-5 Countries: Shock Amplification Perspective

The Asian Financial Crisis (AFC) and Global Financial Crisis (GFC) generated significant negative output gaps across the ASEAN-5 economies, with the GFC producing substantially greater long-run shock amplification. Using FMOLS analysis covering 1990–2020, the findings show considerable differences across countries. Indonesia experienced the strongest amplification during the AFC, while Singapore recorded the largest during the GFC. Monetary policy helped absorb shocks during the AFC, whereas trade openness and financial development amplified GFC effects. The findings underscore the importance of strengthening financial resilience, diversifying trade exposure, and adopting country-specific crisis mitigation policies.

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