The impact of the global economic crisis in South-Eastern European countries

Abstract

The aim of the paper is to investigate the impact of financial crisis on the South-East European economies, throughout a series of econometric tests of a range of transmission mechanisms. Aggregate macroeconomic relationships might contain offset mechanisms (budget deficits, foreign and domestic debt increase). The framework of analysis has not an objective to look into the internal mechanics of growth of national economies, elasticity and substitutions, time lags, positions in income distribution, aas well as, Okun’s law over the business cycle and related reverse linkages. Moreover, the paper has no ambitions to scrutinize the statistical or administrative and methodology changes, domestic deficits, types of subsidies and other exogenous interventions in the incumbent period, which may significantly influence levels and changes of any economic variables, and consequently distort the general conclusions