ipl-logo

Global Financial Crisis And Its Impact On Economic Growth

846 Words4 Pages

IMPACT OF FINANCIAL CRISES ON ECONOMIC GROWTH

BY: UNSA JABEEN

RESEARCH PROPOSAL

INTRODUCTION:
The word “Financial Crises” is a mixture of lose worth of financial organization and assets. It began in 2007-2008 in US and West European affect many developing countries. That’s why this period (2007-2008) is known as global financial crises and considered by many Economists to have been the worst financial crises since the great depression of 1930’s.
In this situation countries faces many crashes such as stock market crash, increase in inflation rate, currency devaluation, increase the amount of foreign debts, decreasing foreign reserves and growth rate is very slow.
At present Pakistan faces financial crises due to political instability, high …show more content…

A time series data used from 1972 to 2010. All the macro economic variables use in this study. The study of this research shows that the main reason of financial crises is poor banking and financial institutions. Kalim Saddiqui (2009) study focus on financial crises and its impact on growth, trade and employment of China and Indian economy. The purpose of this article is to study the crashes of housing market, emerging market, poor banking sector and of course recession. Findings of the study shows that growth and expending domestic demand may increase import demand and it will cause growing economics. A cross sectional data was used. Hassan B. Ghassan et al (2013) used time-series data from 1986 to 2010. According to this study the absence of cointegration between international liquitidy net export and GDP are the cause of financial crises and its impact on Saudi Arabia’s economy specially on oil production. If the monitory authority change the policies the better result will be …show more content…

RESULTS:
Above discussion has shown that because of financial crises Pakistan’s economy affected adversely. It’s main effect on inflation, interest rate, GDP and foreign debt. Real GDP growth rate declined in 2008 as it reached to 1.6% and in 2009 it rose slightly to 3.4%. In 2013-2014 GDP is 4.14% but for development and for economic growth it is very low. So the monitory authority has to change their policies by reducing the size of foreign debt and encourage investment at high level for productivity and economic growth.

REFERENCES: Rauf-e-Azam: University of Institute of Management Science Pakistan. Kalim Siddiqui (Department of Strategy and Marketing) The Business School University Huaderfield. Nitson Phannalagh T. Singhua: University Bejing 100084, P.R.China. Hassan B. Ghassan, Umm Al Qura University Makkah, Saudi Arabia. Muhammad Zoynul Abedin Dalian University of Technology, Bangladesh. Majdi Kasantini and Younes Bowjelbens; University of Sfax Tunisia Istvan Magas Professor and Chair Department of World Economy Budapest Corvinus University (Hungery) Barry. B. Bosworth Center for Retirement Research at Boston College,

Show More
Related

  • Merchant Soldier Sage A New History Of Power Summary

    1418 Words  | 6 Pages

    Many countries are in the process of industrializing, such as China, and other countries are in their post industrial era like the United States. When the economy failed in 2008, the entire world was affected. While many of these countries faced hard times after the economic failure, the elites of most still flourished (Priestland, p 232, 233). Any country that was tied to the global market in some way was affected. They were affected because the merchants had created a world economy in which all major world nation participated.

    Read More

  • Pension Plans: GASB Vs. FASB

    740 Words  | 3 Pages

    Pension Plans By Tay’veun Glenn Introduction Pensions are known as a retirement account that most employers maintain to give employees who have stayed with the company a payout upon retirement. Most employers give recipients of pension accounts a choice between a lump-sum payment or monthly annuity payments that are based upon the amount of time that the employee worked and their final salary prior to leaving the company. There are different types of pension plans and the use of each one is dependent on the employer. The Governmental Accounting Standards Board and Financial Accounting Standards Board both have to report pensions and have designated different ways to account for it.

    Read More

  • Great Depression Dbq

    426 Words  | 2 Pages

    Inflation, played a role in the crash, “an unwarranted increase in currency and bank credit” (Patterson). Employment is what led to people not able to make payments back to the banks, which in turn made the banks fail. Some people were even taking out their money of the banks which also forced banks to close.

    Read More

  • Jon D. Wiseman And The Great Depression

    878 Words  | 4 Pages

    The timing of these failures, the bank’s lack of dealing with them effectively, and the brevity of the Stock Market Crash caused the economy to suffer

    Read More

  • Great Depression Dbq

    1331 Words  | 6 Pages

    Because they could no longer continue to expand, a slowdown was inevitable. While profits went up, wages increased – which widened the distribution of wealth. Because banks didn’t have guarantees with their customers, a situation was created causing most people to panic when times got hard. Very few regulations were placed on banks, enabling people to spend money recklessly in the stock markets. This series of events set off the worst economic downturn in the history of the industrialized world (History.com, par.

    Read More

  • Ridenour Group Case Study

    587 Words  | 3 Pages

    This will be addressed in our second model, Retirement Withdraw Spreadsheet on page 3. This model focuses on the estimated funds needed for living expenses with an adjustment for expected inflation. Based on inflation, expenses, and the income tax rate the withdraw model shows Benedict running out of funds when he reaches age 78. As in our first model this spreadsheet has been expanded beyond the desired regiment age to estimate continued shortfall in Benedict’s savings plan.

    Read More

  • John Maynard Keynes's Economic Policies

    2257 Words  | 10 Pages

    Europe and the rest of the world also were also affected and faced a similar havoc. Keynes’ policy recommendations were followed by the governments to develop affluent economic conditions post- World War II and the Great Depression. The result of this was a period of historically unmatched real economic growth. It persisted for about a quarter of the century – starting from the end of World War II until the early 1970’s.

    Read More

  • Canadian Pension

    610 Words  | 3 Pages

    A country’s social security system is very important, as it directly relates to the happiness and wellbeing of its citizens. During this time period, Canada’s social security system advanced greatly, specifically with the Canadian Pension Plan and the Medical Care Act. Although an Old Age Pension Act was already introduced in 1927, this program only provided benefits for seniors who had an annual income that was less than $350. With the economic improvement following World War 2, seniors faced the problem of inflation because their pensions were tied to minimum income levels rather than the cost of living. In 1951, Louis St. Laurent fixed this issue by introducing the Old Age Security Act and Old Age Assistance Act, the first pensions that

    Read More

  • Henry Paulson Great Depression Summary

    438 Words  | 2 Pages

    "Great depression?" they gasped. Consumer confidence plummeted, as did consumer spending (which accounts for a stunning 2/3 of US GDP). Corporations, in a mass panic, swiftly switched into a mode of panicked layoffs and cost cutting. The banks, already spooked, continued to tighten their lending not just to consumers but to corporations and other banks as well. And ditto for the rest of the world.

    Read More

  • Causes Of The Great Depression Essay

    517 Words  | 3 Pages

    Banks would loan money to people who were investing the stock market leading to more selling of stocks that had a negative effect. Once the stock market crashed, people could not pay the loans they borrowed from the bank, consequently losing all their life’s savings. Another cause was overproduction and declination of consumer consumption. Many factories and farms were producing more than people could buy. If consumers did not buy, then prices would fall, and industries would dismiss employees.

    Read More

  • DBQ Great Recession

    624 Words  | 3 Pages

    The Great Recession was a period of general economic decline observed by world markets beginning around the end of the first decade of the 21st century. The recession was a result of a financial crisis in 2007 which effected the years to come . The primary source of this problem was that banks were creating too much money. In addition, banks had doubled the amount of money and debt in the economy. Resulting in a financial crisis as the government and banks had failed to constrain the financial system’s creation of private credit and money.

    Read More

  • Porter's Five Forces Analysis Of Alibaba

    3615 Words  | 15 Pages

    Assignment: Portfolio Income & costs and profit measures of performance Alibaba.com is a China’s B2B e-commerce company which owns a U.S. IPO that worth $25 billion has become the largest B2B e-commerce company in the world in just a few years and barely anyone expect the company can achieve this results so successful. Referring to the Appendix A, the income of Alibaba has been increasing from year 2010 to 2014. This is because of there has a few key factors of success that carried out by the founder of Alibaba.com, Jack Ma to operate the e-commerce business in the global marketplace.

    Read More

  • Impact Of Recession In Construction Industry

    806 Words  | 4 Pages

    CHAPTER 5 CONCLUSION 5.1 Introduction The impact of recession has been felt throughout the world. This study is an effort to analyse the impact of the recession in India, especially in the construction industry. The impact of the recession has been different in countries around the world. The way the recession has affected the various industries of each nation is also different.

    Read More

  • The Cause Of Great Depression

    1482 Words  | 6 Pages

    In the World History all major events are interconnected and before analyzing a single event it is important to understand the logical sequence of other supporting events. The purpose of writing this paper is to find out the causes of Great Depression, analyze its effects on the U.S economy and society and present the Keynesian approach for economic recovery. The roots of Great Depression go back in the times of World War I. On April 4, 1917, the U.S senate voted in favor of the decision of declaring war on Germany.

    Read More

  • Poverty And Inequality Essay

    1971 Words  | 8 Pages

    Pakistan is in serious danger because these problems are common here and with our internal and external enemies waiting to pound, the volcano can burst open any time causing the people and economy to suffer

    Read More

More about Global Financial Crisis And Its Impact On Economic Growth

Open Document