IDEAS home Printed from https://ideas.repec.org/p/ece/dispap/2010_2.html
   My bibliography  Save this paper

The Global Financial Crisis and Its Impact on Trade: The World and the European Emerging Economies

Author

Listed:
  • Robert Shelburne

    () (United Nations Economic Commission for Europe)

Abstract

This paper describes how the global financial crisis of 2007-2010 impacted trade both globally and more specifically for the European emerging economies, which in terms of GDP decline, were the most negatively impacted economies in the world. Just as with GDP, the trade of the European emerging economies was more severely impacted by the crisis than the trade for other regions of the world; exports for over one half of these economies declined by more than 50 per cent between the third quarter of 2008 and the first quarter of 2009. Despite these large declines, the geographical and sectoral distribution of their trade remained relatively stable. Most of these economies adjusted to the shock with a currency depreciation of about 20 per cent. The current account deficits of many of these economies which were quite large prior to the crisis were reduced significantly. Although there were some increases in protectionist measures and they did have a beggar-thy-neighbor component, in many cases these measures reflected macroeconomic policy failures, especially regarding the coordination of fiscal stimulus programs, and may have been welfare improving second best policies. The crisis is unlikely to result in major design changes in the world trading system, although the opposite is true for the world financial system.

Suggested Citation

  • Robert Shelburne, 2010. "The Global Financial Crisis and Its Impact on Trade: The World and the European Emerging Economies," ECE Discussion Papers Series 2010_2, UNECE.
  • Handle: RePEc:ece:dispap:2010_2
    as

    Download full text from publisher

    File URL: http://www.unece.org/fileadmin/DAM/oes/disc_papers/ECE_DP_2010-2.pdf
    File Function: First version, 2010
    Download Restriction: no

    References listed on IDEAS

    as
    1. Robert Shelburne, 2009. "Current account deficits in the new member states: Causes and consequences," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 44(2), pages 90-95, March.
    2. Robert Shelburne, 2008. "Current Account Deficits in European Emerging Markets," ECE Discussion Papers Series 2008_2, UNECE.
    3. Robert Shelburne, 2002. "Improving The Economic Performance Of The Global Economy," International Trade and Finance Association Conference Papers 1009, International Trade and Finance Association.
    4. Auboin, Marc & Meier-Ewert, Moritz, 2003. "Improving the availability of trade finance during financial crises," WTO Discussion Papers 2, World Trade Organization (WTO), Economic Research and Statistics Division.
    5. Dang, Hai-Anh & Knack, Stephen & Rogers, F. Halsey, 2013. "International aid and financial crises in donor countries," European Journal of Political Economy, Elsevier, vol. 32(C), pages 232-250.
    6. Robert Shelburne & Oksana Pidufala, 2006. "Evolving Trade Patterns in the CIS: The Role of Manufacturing," International Trade and Finance Association Conference Papers 1078, International Trade and Finance Association.
    7. Robert Shelburne, 2008. "Financing Development in the UNECE Emerging Markets," UNECE Annual Report Economic Essays 2008_2, UNECE.
    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. Karen Poghosyan & Evžen Kočenda, 2016. "Determinants of export sophistication: Evidence from Monte Carlo simulations," Working Papers 360, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    2. Marianne Baxter, 2017. "Robust Determinants of Bilateral Trade," 2017 Meeting Papers 591, Society for Economic Dynamics.
    3. Fabio Saracco & Riccardo Di Clemente & Andrea Gabrielli & Tiziano Squartini, 2015. "Detecting early signs of the 2007-2008 crisis in the world trade," Papers 1508.03533, arXiv.org, revised Jul 2016.

    More about this item

    Keywords

    international trade; European emerging economies; financial crisis; transition economies; CIS; Russia; caucasus; central Asia; trade protectionism; current account deficits;

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
    • P45 - Economic Systems - - Other Economic Systems - - - International Linkages

    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:ece:dispap:2010_2. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Robert Shelburne). General contact details of provider: http://edirc.repec.org/data/eceunch.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.