Rights statement: This is the peer reviewed version of the following article: Armstrong, H. W., and Read, R. (2020) SIZE AND SECTORAL SPECIALISATION: THE ASYMMETRIC CROSS‐COUNTRY IMPACTS OF THE 2008 CRISIS AND ITS AFTERMATH. J. Int. Dev., https://doi.org/10.1002/jid.3482 which has been published in final form at https://onlinelibrary.wiley.com/doi/abs/10.1002/jid.3482 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Size and Sectoral Specialisation
T2 - The Asymmetric Cross-Country Impacts of the 2008 Crisis & its Aftermath
AU - Armstrong, Harvey
AU - Read, Robert
N1 - This is the peer reviewed version of the following article: Armstrong, H. W., and Read, R. (2020) SIZE AND SECTORAL SPECIALISATION: THE ASYMMETRIC CROSS‐COUNTRY IMPACTS OF THE 2008 CRISIS AND ITS AFTERMATH. J. Int. Dev., https://doi.org/10.1002/jid.3482 which has been published in final form at https://onlinelibrary.wiley.com/doi/abs/10.1002/jid.3482 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
PY - 2020/8/1
Y1 - 2020/8/1
N2 - This paper analyses the cross-country impacts of the 2008 global financial crisis and the subsequent recovery process, with a specific focus on small economies. Key growth volatility variables highlight the critical exposure of small economies to the transmission of exogenous shocks owing to their high degrees of trade openness and inherent output and export specialisation, notably in financial services and tourism. These factors also constrain the mitigation of exogenous shocks giving rise to greater growth volatility. The paper demonstrates systematic asymmetries between countries with respect to the impact of the crisis and its persistence according to their size and patterns of sectoral specialisation. Small tourism-dependent economies and nonsovereign entities were particularly adversely affected although an offshore financial sector partly mitigated the impacts. The robustness of the findings is examined further in the appendix with regard to truncation problems arising from the use of international datasets.
AB - This paper analyses the cross-country impacts of the 2008 global financial crisis and the subsequent recovery process, with a specific focus on small economies. Key growth volatility variables highlight the critical exposure of small economies to the transmission of exogenous shocks owing to their high degrees of trade openness and inherent output and export specialisation, notably in financial services and tourism. These factors also constrain the mitigation of exogenous shocks giving rise to greater growth volatility. The paper demonstrates systematic asymmetries between countries with respect to the impact of the crisis and its persistence according to their size and patterns of sectoral specialisation. Small tourism-dependent economies and nonsovereign entities were particularly adversely affected although an offshore financial sector partly mitigated the impacts. The robustness of the findings is examined further in the appendix with regard to truncation problems arising from the use of international datasets.
KW - Global crisis; economic shocks; growth volatility; country size; sectoral specialisation; services sector; cluster analysis
U2 - 10.1002/jid.3482
DO - 10.1002/jid.3482
M3 - Journal article
VL - 32
SP - 891
EP - 921
JO - Journal of International Development
JF - Journal of International Development
SN - 0954-1748
IS - 6
ER -