Advertisement

The Financial Crisis in Greece and Its Impacts on Western Balkan Countries

  • Murat SadikuEmail author
  • Luljeta Sadiku
  • Nimete Berisha
Chapter
Part of the Contributions to Economics book series (CE)

Abstract

The issue of financial crisis still remains a matter of concern for Western Balkan countries and Europe as a whole. In moments when the economies of these countries recover from recessions of global financial crisis, a new crisis threatens the region. Indeed, a considerable part of the financial sector of the Western Balkan countries is from the Greek capital, and the economic interdependency among them is relatively great. Therefore, the purpose of this paper is to investigate the probability of a spillover effect of the current Greek crisis to the countries of the Western Balkans. To test for this possibility, the authors make use of a binary logit model after outlining macroeconomic data for the sample countries. The authors conclude by discussing remedies on the impact of the contagion effect on the part of policy makers. The paper provides an interesting approach to a contemporary issue, having attracted little attention in terms of the spillover effect on neighboring countries. How the issue of debt crisis is handled by respective authorities and the European Union and which strategies are followed for crisis alleviation are discussed as well.

Keywords

Greek financial crisis Western Balkan countries Binary logit 

JEL Clasification Codes

C10 E60 C50 

References

  1. Backe P, Gardo S (2012) Spillovers of the Greek crisis to Southeastern Europe: manageable or a cause for concern? http://www.oenb.at/de/img/feei_2012_q1_studies2_tcm14-245872.pdf
  2. Bartlet W, Prica I (2011) The variable impact of the global economic crisis in South East Europe. Economic Annals LVI(191):7–34CrossRefGoogle Scholar
  3. Berg A, Borensztein E, Milesi-Ferretti GM, Pattillo C (1999) Anticipating balance of payment crisis. The role of early warning systems, Occasional paper 186. IMF, Washington, DCGoogle Scholar
  4. Davis EP, Karim D (2008) Could early warning systems have helped to predict the sub prime crisis? Natl Inst Econ Rev 206:35–47CrossRefGoogle Scholar
  5. EBRD (2011) Transition report 2011. Crisis in transition: the people’s perspective. European Bank for Reconstruction and Development, LondonGoogle Scholar
  6. EU Candidate and Pre-accession Countries Economies Quarterly-CCEQ (2011)Google Scholar
  7. IMF World Economic Outlook (WEO) (2012) http://www.imf.org/external/pubs/ft/weo/2012/01/index.htm
  8. Kaminsky G (2006) Currency crises: are they all the same? J Int Money Finance 25(3):503–527CrossRefGoogle Scholar
  9. Kaminsky G, Lizondo S, Reinhart C (1998) Leading indicators for currency crisis. Staff Papers-Int Monetary Fund 45(1):1–48CrossRefGoogle Scholar
  10. Krugman P (1979) A model of balance of payment crises. J Money Credit Bank 11(3):311–25, Ohio State University PressCrossRefGoogle Scholar
  11. Obstfeld M (1996) Models of currency crises with self-fulfilling features. Eur Econ Rev 40:1037–1048CrossRefGoogle Scholar
  12. Papantoniou KA (2011) Migration and economic crisis: the case of Greece. In: Contribution to the conference. Re-Integration centre for migrant workers, Bucharest, 17 Feb 2011Google Scholar
  13. Schneider F, Buehn A, Montenegro EC (2010) Shadow economies all over the world: new estimates for 162 countries from 1999–2007. World Bank regional report on the informal sector in Central, Southern Europe and the Baltic countries (Task number P112988)Google Scholar

Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  1. 1.South East European University of TetovoTetovoRepublic of Macedonia
  2. 2.State University of TetovoTetovoRepublic of Macedonia
  3. 3.University of PrishtinaPrishtinaKosovo

Personalised recommendations