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The Variable Impact of the Global Economic Crisis in South East Europe

Author

Listed:
  • Will Bartlett
  • Ivana Prica
Abstract
This paper studies the variable impact of the global economic crisis on the countries of South East Europe. The central question is whether the institutional reforms introduced during the transition period have enabled countries to cope with external shocks such as those associated with the recent global economic crisis. The transmission mechanisms of the crisis to the region are identified as contractions of credit, foreign direct investment, remittances, and exports, and their variable impact across countries is assessed. Several types of institutions are examined, including the degree to which countries have adopted the acquis communautaire, determined by the extent of their EU integration, progress with transition, and the broad institutional environment measured through the quality of governance. The paper asks whether countries with a more flexible economy due to faster progress with transition reforms were better able to adjust to the impact of external shocks. It concludes that the variable impact of the global crisis in the region can be explained mainly by their degree of integration into the global economy, and that the institutional reforms that were introduced during the boom times have made countries more integrated into the global economy, and therefore more vulnerable to the impact of the global economic crisis.

Suggested Citation

  • Will Bartlett & Ivana Prica, 2011. "The Variable Impact of the Global Economic Crisis in South East Europe," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 56(191), pages 7-34, October-D.
    • Handle: RePEc:beo:journl:v:56:y:2011:i:191:p:7-34
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    References listed on IDEAS

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    2. DIMITRIOU Georgia & METAXAS Theodore, 2018. "Mapping Economic Crisis In South Europe: Greece, Portugal And Cyprus," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 18(2), pages 41-54.
    3. Monastiriotis, Vassilis & Zilic, Ivan, 2020. "The economic effects of political disintegration: Lessons from Serbia and Montenegro," European Journal of Political Economy, Elsevier, vol. 65(C).
    4. Hasan Cömert & Esra Nur Uğurlu, 2015. "The Impacts of the 2008 Global Financial Crisis on Developing Countries: The Case of the 15 Most Affected Countries," ERC Working Papers 1509, ERC - Economic Research Center, Middle East Technical University, revised Oct 2015.
    5. Nazim Habibov & Alena Auchynnikava & Rong Luo & Lida Fan, 2019. "Effects of the 2008 global financial crisis on population health," International Journal of Health Planning and Management, Wiley Blackwell, vol. 34(1), pages 327-353, January.
    6. Saul Estrin & Milica Uvalic, 2016. "Foreign Direct Investment in the Western Balkans: What Role Has it Played During Transition?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 58(3), pages 455-483, September.
    7. Ron Boschma & Simona Iammarino & Raffaele Paci & Jordy Suriñach & Will Bartlett & Nevenka Čučković & Krešimir Jurlin, 2017. "A Comparative Perspective on Institutional Quality in Countries at Different Stages of European Integration," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(1), pages 92-108, February.
    8. Estrin, Saul & Uvalic, Milica, 2016. "Foreign direct investment in the Western Balkans: what role has it played during transition?," LSE Research Online Documents on Economics 67004, London School of Economics and Political Science, LSE Library.
    9. Bartlett, Will, 2014. "Shut out? South East Europe and the EU’s new industrial policy," LSE Research Online Documents on Economics 117490, London School of Economics and Political Science, LSE Library.
    10. MURSA Gabriel Claudiu & IACOBUȚĂ Andreea-Oana & ZANET Maria, 2018. "An Eu Level Analysis Of Several Youth Unemployment Related Factors," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 13(3), pages 105-117, December.
    11. Bošnjak Antonija & Hassan Abeer & James Kieran, 2017. "Analysis of the Banking Sector Performance in Bosnia and Herzegovina, Montenegro and Serbia Before and After the Global Financial Crisis," Economics, Sciendo, vol. 5(2), pages 83-101, December.
    12. Paul Stubbs, 2019. "Towards A Political Economy Of Welfare In Croatia," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 64(223), pages 105-136, October –.
    13. Will Bartlett & Ivana Prica, 2011. "The Variable Impact of the Global Economic Crisis in South East Europe," Economic Annals, Faculty of Economics, University of Belgrade, vol. 56(191), pages 7-34, October-D.
    14. Beata Farkas, 2017. "Market Economies of the Western Balkans Compared to the Central and Eastern European Model of Capitalism," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 19(1), pages 5-36, June.
    15. Predrag Bjelić & Danijela Jaćimović & Ivan Tašić, 2013. "Effects Of The World Economic Crisis On Exports In The Ceec: Focus On The Western Balkans," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 58(196), pages 71-98, January –.
    16. Goce Petreski & Darko Lazarov, 2014. "Analysis of Transmission Channels and Mechanism of the Global Economic Crisis from Developed to South-East European Countries," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 3(3), pages 121-132.
    17. VELICA (CÂRCIUMǍRESCU) Diana- Elena & BELASCU Lucian & HOROBET Alexandra, 2022. "Considerations Upon The Effects Of Covid-19 Pandemic On The Romanian Economic Environment," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(1), pages 272-289, April.
    18. Peter Sanfey & Simone Zeh, 2012. "Making sense of competitiveness indicators in south-eastern Europe," Working Papers 145, European Bank for Reconstruction and Development, Office of the Chief Economist.
    19. Beqiraj, Elton & Di Bartolomeo, Giovanni & Di Pietro, Marco & Serpieri, Carolina, 2018. "Comparing Central Europe and the Baltic macro-economies: A Bayesian approach," EconStor Preprints 175242, ZBW - Leibniz Information Centre for Economics.
    20. Milica Uvalić & Božidar Cerović† & Jasna Atanasijević, 2020. "The Serbian Economy Ten Years After The Global Economic Crisis," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 65(225), pages 33-72, April – J.
    21. Enika Abazi, 2021. "Geopolitics in the Western Balkans: linkages, leverages and gatekeepers," Academicus International Scientific Journal, Entrepreneurship Training Center Albania, issue 24, pages 85-108, July.

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    More about this item

    Keywords

    Global economic crisis; institutional reform; South East Europe;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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