IDEAS home Printed from https://ideas.repec.org/p/unu/wpaper/dp2009-01.html
   My bibliography  Save this paper

The Financial Crisis of 2008 and the Developing Countries

Author

Listed:
  • Wim Naudé

Abstract

Following the financial crisis that broke in the US and other Western economies in late 2008, there is now serious concern about its impact on the developing countries. The world media almost daily reports scenarios of gloom and doom, with many predicting a deep global recession. This paper critically discusses this and concludes that as far as the developing countries are concerned, a bit more optimism may be warranted.

Suggested Citation

  • Wim Naudé, 2009. "The Financial Crisis of 2008 and the Developing Countries," WIDER Working Paper Series DP2009-01, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2009-01
    as

    Download full text from publisher

    File URL: https://www.wider.unu.edu/sites/default/files/dp2009-01.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David Dollar & Shang-Jin Wei, 2007. "Das (Wasted) Kapital: Firm Ownership and Investment Efficiency in China," IMF Working Papers 2007/009, International Monetary Fund.
    2. Felton, Andrew & Reinhart, Carmen M. (ed.), 2009. "The First Global Financial Crisis of the 21st Century Part II: June–December, 2008," Vox eBooks, Centre for Economic Policy Research, number p199.
    3. Mr. Fabian Valencia & Mr. Luc Laeven, 2008. "Systemic Banking Crises: A New Database," IMF Working Papers 2008/224, International Monetary Fund.
    4. Maurice Obstfeld, 2008. "International Finance and Growth in Developing Countries," World Bank Publications - Books, The World Bank Group, number 28029, December.
    5. Shaohua Chen & Martin Ravallion, 2010. "The Developing World is Poorer than We Thought, But No Less Successful in the Fight Against Poverty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1577-1625.
    6. John B. Taylor, 2009. "The Financial Crisis and the Policy Responses: An Empirical Analysis of What Went Wrong," NBER Working Papers 14631, National Bureau of Economic Research, Inc.
    7. Effland, Anne & Roberts, Donna & Normile, Mary Anne & Wainio, John, 2008. "World Trade Organization and Globalization Help Facilitate Growth in Agricultural Trade," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-6, June.
    8. Lars Jonung, 2008. "Lessons from Financial Liberalisation in Scandinavia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 50(4), pages 564-598, December.
    9. Dilip Ratha & Sanket Mohapatra & K. M. Vijayalakshmi & Zhimei Xu, 2007. "Remittance Trends 2007," World Bank Publications - Reports 11024, The World Bank Group.
    10. Dorothy McCormick, 2008. "China & India as Africa's New Donors: The Impact of Aid on Development," Review of African Political Economy, Taylor & Francis Journals, vol. 35(115), pages 73-92, March.
    11. Frank Heinemann, 2008. "Escaping from a Combination of Liquidity Trap and Credit Crunch," CESifo Working Paper Series 2450, CESifo.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ziesemer, Thomas H.W., 2010. "The impact of the credit crisis on poor developing countries: Growth, worker remittances, accumulation and migration," Economic Modelling, Elsevier, vol. 27(5), pages 1230-1245, September.
    2. Cristina Tănăsescu, 2009. "The Global Financial Crisis: Some Special Features, Possible Responses," Romanian Economic Business Review, Romanian-American University, vol. 4(3), pages 97-102, September.
    3. John Weeks, 2009. "The Impact of the Global Financial Crisis on The Economy of Sierra Leone," Research Report 18, International Policy Centre for Inclusive Growth.
    4. Miao Han, 2012. "The People's Bank of China during the global financial crisis: policy responses and beyond," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 10(4), pages 361-390, August.
    5. Hadeel Yaseen & Ghassan Omet & Morad Abdel-Halim, 2015. "The 2008 Global Financial Crisis: The Case of a Market with Consistent Losses Ever Since," Eurasian Journal of Business and Management, Eurasian Publications, vol. 3(1), pages 8-19.
    6. Katleho Daniel Makatjane & Edward Kagiso Molefe & Roscoe Bertrum van Wyk, 2018. "The Analysis of the 2008 US Financial Crisis: An Intervention Approach," Journal of Economics and Behavioral Studies, AMH International, vol. 10(1), pages 59-68.
    7. Tony Addison & Channing Arndt & Finn Tarp, 2011. "The Triple Crisis and the Global Aid Architecture," African Development Review, African Development Bank, vol. 23(4), pages 461-478, December.
    8. I Kadek Dian Sutrisna Artha & Jakob de Haan, 2011. "Labor Market Flexibility and the Impact of the Financial Crisis," Kyklos, Wiley Blackwell, vol. 64(2), pages 213-230, May.
    9. Arjan de Haan, 2010. "A defining moment? China's social policy response to the financial crisis," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(6), pages 758-771.
    10. Abdulghani Gaghman, 2020. "2008 Global Financial Recession Impact on Yemen's Economy and Oil Industry," Technium Social Sciences Journal, Technium Science, vol. 5(1), pages 46-60, March.
    11. Tennant, David, 2011. "Factors impacting on whether and how businesses respond to early warning signs of financial and economic turmoil: Jamaican firms in the global crisis," Journal of Economics and Business, Elsevier, vol. 63(5), pages 472-491, September.
    12. Arjan de Haan, 2010. "The Financial Crisis and China’s “Harmonious Societyâ€," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 39(2), pages 69-99.
    13. Wim Naudé, 2009. "Fallacies about the Global Financial Crisis Harms Recovery in the Poorest Countries," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 10(04), pages 3-12, January.
    14. Filiz AGAOGLU, 2013. "Impact Of The International Financial Crisis On The Garantibank In Turkey And Romania," Network Intelligence Studies, Romanian Foundation for Business Intelligence, Editorial Department, issue 2, pages 13-27, October.
    15. Debasish Kumar Das & Champa Bati Dutta, 2013. "Global Financial Crisis And Foreign Development Assistance Shocks In Least Developing Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(2), pages 1-41, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gries Thomas & Naude Wim, 2011. "Entrepreneurship, Structural Change and a Global Economic Crisis," Entrepreneurship Research Journal, De Gruyter, vol. 1(3), pages 1-43, July.
    2. Ph.D Luminita Horhota, & Ph.D Cristina Nicoleta Matei, 2009. "Impact Of Financial Crisis On Developing Countries," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(13S), pages 7-14, November.
    3. Gries Thomas & Naude Wim, 2011. "Entrepreneurship, Structural Change and a Global Economic Crisis," Entrepreneurship Research Journal, De Gruyter, vol. 1(3), pages 1-43, July.
    4. Stijn Claessens & M. Ayhan Kose, 2013. "Financial Crises: Explanations, Types and Implications," CAMA Working Papers 2013-06, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    5. Pomfret, Richard, 2010. "The financial sector and the future of capitalism," Economic Systems, Elsevier, vol. 34(1), pages 22-37, March.
    6. Kim, Teakdong & Koo, Bonwoo & Park, Minsoo, 2013. "Role of financial regulation and innovation in the financial crisis," Journal of Financial Stability, Elsevier, vol. 9(4), pages 662-672.
    7. Maria Socorro Gochoco-Bautista, 2009. "Global Crises and Reform of the International Monetary System," UP School of Economics Discussion Papers 200914, University of the Philippines School of Economics.
    8. Alan M. Taylor, 2015. "Credit, Financial Stability, and the Macroeconomy," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 309-339, August.
    9. Smets, Frank & Collard, Fabrice & Boissay, Frédéric, 2013. "Booms and systemic banking crises," Working Paper Series 1514, European Central Bank.
    10. Ghassan Omet, 2011. "Stock Market Liquidity: Comparative Analysis of The Abu Dhabi Stock Exchange and Dubai Financial Market," Working Papers 655, Economic Research Forum, revised 12 Jan 2011.
    11. Klaus Abberger & Biswa Nath Bhattacharyay & Chang Woon Nam & Gernot Nerb & Siegfried Schönherr, 2014. "How Can the Crisis Vulnerability of Emerging Economies Be Reduced?," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 65.
    12. repec:ilo:ilowps:457693 is not listed on IDEAS
    13. Beachy, Ben, 2012. "A Financial Crisis Manual Causes, Consequences, and Lessons of the Financial Crisis," Working Papers 179105, Tufts University, Global Development and Environment Institute.
    14. Kenneth Patrick Vincent O'Sullivan & Stephen Kinsella, 2013. "Financial and regulatory failure: The case of Ireland," Journal of Banking Regulation, Palgrave Macmillan, vol. 14(1), pages 1-15, January.
    15. Casu, Barbara & Clare, Andrew & Saleh, Nashwa, 2011. "Towards a new model for early warning signals for systemic financial fragility and near crises: an application to OECD countries," MPRA Paper 37043, University Library of Munich, Germany.
    16. Ben Beachy, 2012. "A Financial Crisis Manual Causes, Consequences, and Lessons of the Financial Crisis," GDAE Working Papers 12-06, GDAE, Tufts University.
    17. Hongyi Chen & Lars Jonung & Olaf Unteroberdoerster, 2014. "Lessons for China from Financial Liberalization in Scandinavia," Asian Economic Papers, MIT Press, vol. 13(1), pages 1-44, Winter.
    18. Nikolov, Pavel, 2010. "Procyclical Effects of the banking System during the financial and economic Crisis 2007-2009: the Case of Europe," MPRA Paper 23945, University Library of Munich, Germany.
    19. Iana Liadze & Ray Barrell & Professor E. Philip Davis, 2010. "Calibrating macroprudential policy," National Institute of Economic and Social Research (NIESR) Discussion Papers 354, National Institute of Economic and Social Research.
    20. Russell, Jesse, 2012. "Ethical crises in the international political economy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(6), pages 843-848.
    21. Verick, Sher & Islam, Iyanatul, 2010. "The Great Recession of 2008-2009: Causes, Consequences and Policy Responses," IZA Discussion Papers 4934, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Economic assistance and foreign aid; Economic development; Financial crisis; Globalization; International finance; Foreign loans;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:dp2009-01. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Siméon Rapin (email available below). General contact details of provider: https://edirc.repec.org/data/widerfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.