Global financial economic crisis transmission on the transition economy: Case of the Kyrgyz Republic

Purpose



The global financial crisis hit the economy of the Kyrgyz Republic by the third wave of its transmission in early 2009. The purpose of this study is to examine the impact of the global financial economic crisis on the transition economy of the Kyrgyz Republic. As there is a low level of the Kyrgyz Republic's integration into the global financial and economic processes, it is obvious that channels of transmissions are different.



Design/methodology/approach



The empirical model is the vector autoregression approach. The quarterly data from 2005 to 2013 of the remittances from abroad, trade volumes, exchange rates, credits, deposits and liquidity of the banking system, gross domestic product (GDP) and foreign direct investment (FDI) were used in the empirical analysis.



Findings



The authors found a significant positive relation between transmission channels such as remittances flow, banking sector, international trade and GDP within the first six months. Thus, a decline in the aforementioned variables has a significant affirmative effect on the country's GDP. Notwithstanding, the exchange-rate channel adversely influences GDP. Thereby, the depreciation of the national currency leads to an increase in GDP.



Originality/value



The study findings allow the Kyrgyz policymakers to foresee the global crisis transmission through the primary channels of transmission mechanism. Nevertheless, a decrease of the deposit level by 1 per cent leads to 2.91 per cent decline in FDI inflows. On the contrary, an increase of the exchange rate by 1 per cent leads to 1.54 per cent decrease in imports.

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Publication Name
(dc.title)
Global financial economic crisis transmission on the transition economy: Case of the Kyrgyz Republic
Author/s
(dc.contributor.yazarlar)
Nargiza Alymkulova, Junus Ganiev
Publication type
(dc.type)
Makale
Language
(dc.language)
İngilizce
Publication year
(dc.date.issued)
2019
National/International
(dc.identifier.ulusaluluslararasi)
Uluslararası
Source
(dc.relation.journal)
Journal of Financial Economic Policy
Number
(dc.identifier.issue)
1
Volume/Issue
(dc.identifier.volume)
12
Page
(dc.identifier.startpage)
1-22
ISSN/ISBN
(dc.identifier.issn)
ISSN: 1757-6385; Online ISSN: 1757-6393
Publisher
(dc.publisher)
Emerald Publishing, England
Databases
(dc.contributor.veritaban)
Web of Science Core Collection
Databases
(dc.contributor.veritaban)
Emerald
Databases
(dc.contributor.veritaban)
Scopus
Index Type
(dc.identifier.index)
ESCI
Index Type
(dc.identifier.index)
Scopus
Abstract
(dc.description.abstract)
Purpose
Abstract
(dc.description.abstract)
The global financial crisis hit the economy of the Kyrgyz Republic by the third wave of its transmission in early 2009. The purpose of this study is to examine the impact of the global financial economic crisis on the transition economy of the Kyrgyz Republic. As there is a low level of the Kyrgyz Republic's integration into the global financial and economic processes, it is obvious that channels of transmissions are different.
Abstract
(dc.description.abstract)
Design/methodology/approach
Abstract
(dc.description.abstract)
The empirical model is the vector autoregression approach. The quarterly data from 2005 to 2013 of the remittances from abroad, trade volumes, exchange rates, credits, deposits and liquidity of the banking system, gross domestic product (GDP) and foreign direct investment (FDI) were used in the empirical analysis.
Abstract
(dc.description.abstract)
Findings
Abstract
(dc.description.abstract)
The authors found a significant positive relation between transmission channels such as remittances flow, banking sector, international trade and GDP within the first six months. Thus, a decline in the aforementioned variables has a significant affirmative effect on the country's GDP. Notwithstanding, the exchange-rate channel adversely influences GDP. Thereby, the depreciation of the national currency leads to an increase in GDP.
Abstract
(dc.description.abstract)
Originality/value
Abstract
(dc.description.abstract)
The study findings allow the Kyrgyz policymakers to foresee the global crisis transmission through the primary channels of transmission mechanism. Nevertheless, a decrease of the deposit level by 1 per cent leads to 2.91 per cent decline in FDI inflows. On the contrary, an increase of the exchange rate by 1 per cent leads to 1.54 per cent decrease in imports.
URL
(dc.rights)
https://www.emerald.com/insight/content/doi/10.1108/JFEP-09-2018-0133/full/html
DOI
(dc.identifier.doi)
10.1108/JFEP-09-2018-0133
Faculty / Institute
(dc.identifier.fakulte)
İktisadi ve İdari Bilimler Fakültesi
Department
(dc.identifier.bolum)
İktisat Bölümü
Author(s) in the Institution
(dc.contributor.author)
Cunus GANİEV
Kayıt No
(dc.identifier.kayitno)
BLDEF8D0D1
Record Add Date
(dc.date.available)
2020-05-11
Notes (Publication year)
(dc.identifier.notyayinyili)
April 2019
Wos No
(dc.identifier.wos)
WOS:000526357900001
Subject Headings
(dc.subject)
global financial economic crisis
Subject Headings
(dc.subject)
transmission mechanism
Subject Headings
(dc.subject)
transmission channels
Subject Headings
(dc.subject)
vector autoregression
Subject Headings
(dc.subject)
transition economy
Subject Headings
(dc.subject)
Kyrgyz Republic
Subject Headings
(dc.subject)
waves of crisis transmission
Subject Headings
(dc.subject)
E5
Subject Headings
(dc.subject)
E6
Subject Headings
(dc.subject)
G01
Subject Headings
(dc.subject)
P2
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