BUSN20016 Global financial crisis in OECD countries assessment

Title of the Project

Long-term damage from the great recession in OECD countries

Brief statement of the problem

The global financial crisis as well as great recession that occur from 2008-2009 has a negative impact on various countries. It is analyzed that recession assists in reducing the potential output of the economy. Potential output of the countries fall as recession minimizes capital growth leaves impacts on people who lost their job and disrupt the economic condition of the countries (Ball, 2014).  The output of the recession is very much depressed until now and therefore the various authorities of IMF took an initiative for brining recovery in the next five years. Strong hysteresis effects are experienced by many countries, which include shortfall of various actual outputs. The current growths of the countries are less, which helps in suggesting that the intensity of cost-potential is enhancing.

Research aim and objective 

The main aim of the research is to estimate the long-term impacts of global recession in 23 countries. These effects are generally measured by comparing the recent estimation of potential output from IMF and OECD.   The paper examines deep recession around the world for finding their impacts.

The main objectives of the research include:

• To estimate OECD of potential output in all the 23 countries for quantifying the long-term damage from recession
• To select the track that potential yield must be followed before financial crisis
• To compare the pre-crisis trend for estimating potential output as well as for interpreting the various effects f recession.

Brief Methodology

The research methodology is defined as a procedure, which is utilized in order to collect appropriate data for making proper business related decisions (Blumberg, Cooper & Schindler, 2014).  The research methodology generally includes research, interviews, surveys as well as other research techniques.

Research outline

The research methodology is utilized in order to identify various methods that are necessary for the research (Flick, 2015).  The methodology generally involves with the damage that generally occurs due to the recession in various OECD countries. The research methodology mainly comprises of research design, data collection procedure, and research philosophy and research approach. Research design is used in order to integrate the different components of the research study in an appropriate way.

 Research Philosophy

Research Philosophy is defined as a method through which data about a procedure is collected as well as analyzed. The research philosophies are mainly of three types, which include positivism, realism as well as interpretivism (Gast & Ledford, 2014). The current research paper utilizes positivism as it assists in gathering all the confidential information that is associated with the recession. The paper mainly estimates OECD of potential output in all the 23 countries for quantifying the long-term damage from recession and as a result, positivism is the appropriate research philosophy.

Research Approach

Research approach is mainly utilized for illustrating the topic properly in order to expose the format, which is required for the research. The research approaches are mainly of two types that are deductive approach as well as inductive research approach (Smith, 2015).  In this research paper, deductive approach is most suitable as the research can analyze the problems that are affecting the countries due to recession. Inductive approach of research is not suitable as there is no model, which can be used in the paper for undertaking a literature survey.

Research Design

The research topic is mainly illustrated with the help of the research design and it further helps in selecting appropriate pattern for analyzing as well as collecting data. The research designs are mainly divided into three types that are descriptive, exploratory as well as explanatory (Taylor, Bogdan & DeVault, 2015). In the current research paper, descriptive design is utilized for illustrating the problems that the various countries are facing due to the global recession as well as financial crisis. The theoretical framework assists in examining the factors as well as appropriate reason behind the cause as well as impacts of recession.

Data Collection Procedure

Data collection procedure is defined as a method that is mainly used for gathering different types of information on various variables in a quite systematic way (Vaioleti, 2016). The procedure of data collection is divided into two types, which include secondary data collection procedure as well as primary data collection method. Secondary data collection procedure is utilized in this research paper as OECD estimated the potential output by analyzing the long-run trends, capital stock as well as total factor productivity.