<abstract xmlns="http://www.w3.org/1999/xhtml"><p> The aim of this article is to compare 2008-2010 recession magnitudes in individual EU countries. For the comparison the recession magnitude scale was used. The strongest recession during the examined period took place in Latvia, Estonia, Lithuania, Greece and Ireland, while the weakest recessions in the EU occurred in France, Malta and Cyprus. Poland and Slovakia were the only two EU countries that didn’t fall into a recession, that’s why they were not included in the study. The main findings of the paper are that EU19’s recession was much smaller than both the Great Depression of the 1930s and the recent Great Recession in the USA. Furthermore, with the use of a linear econometric model it was found that recession magnitudes in EU countries were directly proportional to the countries’ GDP per capita in 2008 and growth prior to recessions, while countries’ economic openness was indirectly proportional to recession magnitudes, all the relationships being statistically significant.</p></abstract>

The aim of this article is to compare 2008-2010 recession magnitudes in individual EU countries. For the comparison the recession magnitude scale was used. The strongest recession during the examined period took place in Latvia, Estonia, Lithuania, Greece and Ireland, while the weakest recessions in the EU occurred in France, Malta and Cyprus. Poland and Slovakia were the only two EU countries that didn’t fall into a recession, that’s why they were not included in the study. The main findings of the paper are that EU19’s recession was much smaller than both the Great Depression of the 1930s and the recent Great Recession in the USA. Furthermore, with the use of a linear econometric model it was found that recession magnitudes in EU countries were directly proportional to the countries’ GDP per capita in 2008 and growth prior to recessions, while countries’ economic openness was indirectly proportional to recession magnitudes, all the relationships being statistically significant.

The Evaluation of Recession Magnitudes in EU Countries during the Great Recession 2008–2010

Silesian University in Opava, School of Business Administration in Karvina , Univerzitní nám. 1934/3, Karviná, Czechia

Review of Economic Perspectives

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The aim of this article is to compare 2008-2010 recession magnitudes in individual EU countries. For the comparison the recession magnitude scale was used. The...

The Evaluation of Recession Magnitudes in EU Countries during the Great Recession 2008–2010

Published Online: Oct 13, 2016

Page range: 231 - 244

Received: Mar 06, 2016

Accepted: Aug 30, 2016

DOI: https://doi.org/10.1515/revecp-2016-0014

Keywords
European Union, global financial crisis, recession, recession classification, recession magnitude

© by Jiří Mazurek

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The Evaluation of Recession Magnitudes in EU Countries during the Great Recession 2008–2010

Published Online: Oct 13, 2016

Page range: 231 - 244

Received: Mar 06, 2016

Accepted: Aug 30, 2016

DOI: https://doi.org/10.1515/revecp-2016-0014

KeywordsEuropean Union, global financial crisis, recession, recession classification, recession magnitude

© by Jiří Mazurek

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
European Union, global financial crisis, recession, recession classification, recession magnitude