The Study Of The Impact Of External Factors On Domestic Financial Ecosystem Based On Copula Theory

As the Sub-prime Crisis,which broke out in the 2007,badly hurt the economy of American and also brought fierce turbulence to the global financial market,many scholars have been concerning this issue since it happened with high interests.This article which has studied the Sub-prime crisis and emphasizes the impacts of the external factors on the domestic financial ecosystem,will be benefit for the research about this financial crisis,and also be of great significance in the improving the financial ecosystem of our country.The financial ecology theory,which illustrates the financial system in the viewpoint of ecology,stresses the effects of financial environments.With the beginning of financial ecology,this paper discusses the influence of external shocks on the domestic financial ecosystem,furthermore,it also establishes a model to do empirical analysis on the impact of the sub-prime on domestic financial system in the application of copula theory,which is a new statistics method.In the model,the author analyzes the impact of sub-prime crisis on the home financial ecosystem in two aspects of dependency and volatility.After the empirical analysis,this article suggests that it can not ignore the influence of external factors,and we should pay great attention to the work of crisis prevention and monitoring.The main innovations of the paper are as the following:studying the impact of external factors on domestic financial system in the way of qualitative method; introducing the copula theory and analyzing the results of sub-prime crisis on home financial market in the aspects of dependency and volatility;discussing the volatility spillover effect using the copula model,and the results indicating that the volatility spillover effect exists in the financial crisis period and the dependency will be strengthening obviously which usually conduct the crisis from one financial system to another financial system;make private proposals:one is to set up an independent institution to collect and monitor the economic indictors of the main economies, another is to put risk control in top priority in the financial innovation;the final is to improve the financial supervising and enhance international cooperation,as we can use asymmetric information theory to illustrate every financial crisis.