چکیده:
The recent global crisis, as a big crash (Baldwin and Simon, 2009), has reduced foreign demand growth affecting total countries’ exports. Given the importance of foreign trade to nations and the reality that recent crisis has affected international trade; we study the effects of the global financial crisis on trade relations between countries by using Ma and Cheng (2003) approach and by applying gravity model to both selected developed and developing countries during 1998-2010. Emprical results have approved negative effects of financial crisis on international trade in the countries under consideration. The result obtained is evident that such incidence seems to be significant to explain a sharp fall in the world exports.
خلاصه ماشینی:
"Effect of Global Financial Crisis on International Trade in Developed and Developing Countries Zahra Zamani Department of Economics, University of Isfahan, Iran Mohammad Vaez Barzani Department of Economics, University of Isfahan, Iran Abstract The recent global crisis, as a big crash (Baldwin and Simon, 2009), has reduced foreign demand growth affecting total countries’ exports.
Given the importance of foreign trade to nations and the reality that recent crisis has affected international trade; we study the effects of the global financial crisis on trade relations between countries by using Ma and Cheng (2003) approach and by applying gravity model to both selected developed and developing countries during 1998-2010.
4. The Model If a country and its trading partners faces financial crisis, both its exports and imports are affected simultaneously by internal and external shocks that are arising from such crisis since it causes currency fluctuations and disorganization in their business and financial affairs.
Table 1: Estimated result of gravity model indicating crisis effect on bilateral trade relations in developed countries Pr > |t| t statistics Coefficient Variable (log) 0.
Table 2: Estimated result of gravity model of indicating crisis effect on trade relations in developing countries (in FGLS methods) Z statistics Pr > |Z| Coefficient Variable (log) 4.
The financial crisis happened in developed countries have affected developing countries’ trade through a decline in export earnings (particularly exports of raw materials such as oil and other natural resources), economic growth, foreign investment, pressures on current balance and balance of payments, government spending and jobs opportunity destruction and capital markets crash."