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International Trade During The Crisis. Determinants

Author

Listed:
  • Cristian Spiridon

    (Doctoral School of Economics, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, Romania)

Abstract

This article aims to analyze how the financial crisis that bursted in the mid-2008 led to a global and regional drop in trade flows. It starts from a comparison of the Great Depression shock to what happened during the Great Recession. Based on the similarities and differences found in the literature we take a simple econometric analysis to study the relationship between income, private lending and imports of goods by different countries from the financial meltdown starting point. The main findings consist of the magnitude heterogeneity of the decrease in income and credit at the regional level and on country groups according to the degree of development and the uttering of new factors influencing world trade (risk shock, increasing uncertainty, escalating non-tariff protectionist measures).

Suggested Citation

  • Cristian Spiridon, 2014. "International Trade During The Crisis. Determinants," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 6(2), pages 156-164, July.
    • Handle: RePEc:jes:wpaper:y:2014:v:6:i:2:p:156-164
    as

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    File URL: http://www.ceswp.uaic.ro/articles/CESWP2014_VI2_SPI.pdf
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    References listed on IDEAS

    as
    1. Crucini, Mario J. & Kahn, James, 1996. "Tariffs and aggregate economic activity: Lessons from the Great Depression," Journal of Monetary Economics, Elsevier, vol. 38(3), pages 427-467, December.
    2. Douglas A. Irwin, 1998. "The Smoot-Hawley Tariff: A Quantitative Assessment," The Review of Economics and Statistics, MIT Press, vol. 80(2), pages 326-334, May.
    3. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    international trade; financial crisis; Great Depression; Great Recession Romania;
    All these keywords.

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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