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The myth of economic recovery: The case of crises in neighboring countries

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  • Sever, Can

Abstract

Although there is evidence that there are economic spillovers from neighboring countries to the domestic economy, there has been lack of effort to discover the persistence of these effects. Using panel data for a large set of countries, I ask whether the effect of crises in neighboring countries on the domestic output is long lasting. I show that different sorts of political and financial crises in neighboring countries have a highly persistent impact on the domestic output with no evidence for recovery.

Suggested Citation

  • Sever, Can, 2018. "The myth of economic recovery: The case of crises in neighboring countries," Economics Letters, Elsevier, vol. 164(C), pages 65-69.
    • Handle: RePEc:eee:ecolet:v:164:y:2018:i:c:p:65-69
    DOI: 10.1016/j.econlet.2018.01.007
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial crisis; Political crisis; Economic recovery; Growth; Spillovers;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G01 - Financial Economics - - General - - - Financial Crises
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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