The Effects of Recent Financial Crisis on Business Integration of OECD Countries
Alireza Shakibaei
Associate Professor in Economics, Kerman University
Maryam Saeid
MA Student in Economics
Absreract
World's financial crisis which began in 2007 with the collapse of New York stock market and explosion of housing bubble in America has undergone huge changes. This crisis, which started with incorrect economic policy of America Federal Reserves, has rapidly changed the economic feature of the world.
According to statistics, certainly, it can be said, this crisis is the largest financial crisis in history, also it absolutely is global and pervasive phenomenon.
In recent years, OECD is advanced to announce its skills and experience to the developing economy and market economy. The necessity of 4globalization, the amplitude of OECD is expanded and analyzed the quality of regional policy and the communication of countries with each other and this issue is done beyond the OECD region.
Also, since the crisis is completely new in this period of time, a research which studies the crisis and its effects on economic and business relations of developed (OECD) countries is of great importance.
Adjusting trade policy with the aim of preventing from the affection of financial crisis on countries is the most dominant aim of this study.
This study benefits from Gravity Model to make a pattern to estimate trade effects, by using this model (econometrics and Panel Data Model), effects of financial recent crisis on business integration of OECD countries during 1995-2009 were investigated. The results of the study showed that the effects of recent financial Crisis on business integration of OECD countries was 75 percent which showed that happening of financial crisis integrate OECD countries make more integrated 75 percent.
Keywords: Recent financial crisis, Business integration, Gravity model
JEL: C33,F13,F15 |
