VULNERABILITY OF SMALL OPEN ECONOMIES TO EXTERNAL ECONOMIC SHOCKS

Authors

Keywords
international propagation of economic shocks, synchronization of national economies, economic growth, economic interdependence

Summary
This paper aims to study the international propagation of economic shocks by adopting the thesis for a causality between the economic growth in a country and the dynamics of the respective indicator in the foreign trade partners of that country. The main tasks of this research are: to develop an econometric model for testing the causal relationship between the economic growth of national economies; to study the influence of a national economy’s openness on its vulnerability to external economic shocks; to study the influence of the national economy’s size on the vulnerability to external economic shocks. A multiplicative regression model is used to establish the specified causality on which the relative size of partners’ economies has a moderating influence. There is a statistically significant relationship between the openness of the national economy and its susceptibility to external economic shocks

JEL: E32, F41, F42, F43, F44
Pages: 19
Price: 3 Points

More titles

  • INNOVATIVE PRACTICES FOR GOOD MANAGEMENT

    The concept of good management is directly related to the sustainable development policy. As such, it requires decision-making and regulation of relationships in an environment of uncertainty. In such conditions the achievement of the objective depends on a successful combination of the implemented management tools and practices. Thus innovation ...

  • RESEARCH ON THE PROCESSES OF INTEGRATION AND DIFFERENTIATION IN THE EUROPEAN UNION

    The international regional integration and the processes taking place at the economic formations have been the subject of numerous economic, political and sociological studies since the 1950s. The core question that arises, in this regard, is if there can be noticed occurrence of processes, contradictory to the integration – processes of ...

  • ASSESSING CAPITAL ADEQUACY OF INSURANCE COMPANIES IN BULGARIA AND THE IMPACT OF THE NEW INSURANCE CODE ON THE ACTIVITIES OF INSURANCE INTERMEDIARIES

    This study presents the results of a survey conducted in 2016 of the assets and liabilities of insurance companies in Bulgaria. The main purpose of the study is to outline the state of the insurance market in the Republic of Bulgaria and the opportunities for improving the activities of insurance intermediaries under the new Insurance Code. It ...