Economic Factors that Hinder Recovery from Economic Crisis - Research Paper Example

FACTORS THAT CONTRIBUTE SLOW ECONOMIC RECOVERY By (Name) Name of Course Tutor Institution Department Date Economic Factors That Hinder Recovery From Economic Crisis: Case Of Great Recession The paper examines academic papers with each paper examines the causes of the stagnant economic recovery in America and Spain respectively. The countries were selected as they are on different continents and the recession affected them differently. The aim and objective of the paper are to discuss the factors that hinder countries from the great recession. The article will discuss the goals, objectives, and methods that are presented in the papers to show the strategies presented by the authors. The papers show that countries are struggling to recover from the great recession that occurred in the late 200os to the early 2010s. The economic downturn that took place in 2008 worsened the economic conditions in many countries with many companies becoming bankrupt while others laid off many employees. Introduction and structure analysis The paper is based on the analysis of two papers. The paper based on economic factors that are contributing to the stagnation in economic recovery in Spain and America. The great recession that started in the 2000s to the early 2010s hit many countries hard. Countries that did not have stable economies were the worst affected (Carballo-Cruz, 2011). Understanding the factors that contributed to the economic meltdown and stagnation in economic recovery can help the policy makers in Spain to come up with policies that can help countries to recover successfully based on Spain and America case studies. Studies have been conducted to understand the reasons as to why countries struggle to improve in the events of the economic downturn. These studies adopt quantitative and qualitative research designs to gather information on impacts of the great recession and ways in which countries can successfully recover from this economic downturn (Carballo-Cruz, 2011). The papers used in the study follows qualitative studies approach. This means that the data presented in the analysis is based on analysis of different data sources. It is vital to note that the papers used in this report are analysed independently to give a clear understanding of the effects of the recession and factors that have made it difficult for countries to recover from the recession. The paper is organized in different sections. The paper will consist of a section that addresses the case of Spain, and the next section will be composed of the section that analyses the case of America. Paper 1 The first paper analyses the reasons and implications of the Spanish economic crisis and why it has taken long to recover. Spain began to show signs of exhaustion from 2006. The deterioration in the structure of the Spanish economy coupled with poor decision making has resulted in the economic meltdown (Cynamon and Fazzari, 2015). The Spanish economy began to phase a downturn since 2007. The recession took seven years which is unusually long as most economic downturn take three to four years to come to a completion. The economic outlook in the great recession is caused by many factors which interlink (Cynamon and Fazzari, 2015). These factors which include the tax regimes and fiscal responsibility in the country have contributed to the slow economic recovery. The paper is thus an interpretive paper which used the qualitative approach to analyze the data collected to identify and understand the factors that contribute to the slow economic recovery in Spain. Research Purpose The research has an aim of identifying the cause and consequences of the economic crisis in Spain as well as the factors that contribute to the slow recovery of the financial crisis in Spain. The following objectives were used in the study: Identifying the causes of economic crisis in Spain Identifying and categorizing the factors that cause the slow recovery in the economy of Spain about the factors that cause the financial crisis Rationale of the study The justification of the research topic is based on the following points: The economies of many nations in the world is performing poorly since the great recession and economic downturn in 2008 These problems result in high cases of unemployment and high standards of living which the poor people cannot afford. The banking sector and the real estate sectors are among the worst hit areas in the world as well as Spain. These sectors require practical steps that can help to avert future crises Identification of the factors that contribute to slow economic recovery in Spain can provide to identify country specific mitigation measures that can help countries to recover from the great recession based on the case study of Spain (Kochhar and Fry,2014). Research design The paper uses the case study research design where the banking sector and real estate in Spain. The case of the banking sector and the real estate in Spain are evaluated and compared to show the patterns of association regarding the causes and implications of the economic crisis and how they affect the overall economy of the country (Walliman, 2015). The banking sector and the real estate sectors were chosen for they affect people directly with the monetary policies of the bank affecting the economy and the cost of living and consequently the real estate division (Bloom, 2014). Research Method And Data Collection The qualitative method was used in the compilation of data as it gave an insight into the view of policymakers in the banking industry and other vital players in the banking and real estate sector. An unstructured interview was used in conducting the research (Sekaran and Bougie, 2016). There was no discussion on the reliability of the data collected. The authors of the paper could have however based their research on credibility. No documents have been attached to show the credibility of the research data. Alternative Research Strategy The research focuses more on the banking sector and real estate sector which means that other sectors of the economy are left to the discussion. The study required a mixed method approach for it to give credible results and insight in the discussion. The mixed method provides contrasting ideas from the research which helps to identify the factors from a different sector of the economy that results in slow economic recovery. Summary The research objectives were well explained. However, the research needed a mixed method approach to identify all the factors that contribute to the slow economic recovery. The paper gives a comprehensive analysis of the causes and impacts of the financial meltdown, and yet little input is placed on the methodology sector. The paper identifies unemployment and indebtedness as the leading causes of slow economic recovery and leaves out other factors that contribute to slow economic recovery. The paper is also not divided into the methodology sector which is vital in a research paper. Paper 2 The objective of the paper is to analyse the causes of the slow recovery from the economic crisis in the great recession of 2008to 2009 (Blecker, 2014). The continued falling house prices and household debts are still depressing the American citizens. Some factors that contribute to the slow economic recovery have been identified, and they include an increase in the household debts, unequal income distribution, and monetary policies have contributed to the slow recovery (Blecker, 2014). Research purpose The study was aimed at: Identifying the causes of the great recession of 2008to 2009 Identifying factors that result in the slow economic recovery in the United States Determining the effects that slow recovery has to other countries in the world Research design The author used Federal Reserve Board (FRB) statistical releases to show the cause and consequences of the great recession in America. The statistical analyses from FRB gave an outline of the cases of an economic meltdown. The authors used literature review to show the reasons why the federal government used the policies they chose in fighting recession (Blecker, 2014). The study uses a cross-sectional research design to collect data on different variables in the financial sector such as the banking sector and the area of housing to examine the connection between these variables. Research Method And Data Collection The paper did not present a methodology section. The analysis of the article was based on identifying published data which included data from the government on the effects of the great recession within America and its impacts on Brazil (Temin, 2016). The author of the paper based the article on purposive sampling which is based on personal judgments and evaluation of the factors as identified by the researcher. Statistical data from the Federal Reserve Board were incorporated in the analysis (Kagel, and Roth, 2016). The analysis enabled the researcher to assess the validity and reliability of the data he had gathered in the housing and banking sector. Information on the questionnaires that were used in the study is not given, and the author focuses on global trade relations and the underlying causes of the slow economic growth in America. Alternative Research Strategy The research should have given more information on the type of methodology used in the study. The study seems to focus on a single method of data collection (Anderson et al., 2014). The research could have utilized a quantitative approach since the area of investigation is not new which could have presented new findings in the study area. Summary The paper is well structured and presents the causes of the slow economic recovery. The article should have included a proper methodology and an outline of research questions (Anderson et al., 2014). The research design in the does not define the target population and sample method used. This means that the validity of data is questionable. The paper did not give a proper structure on the collection of data which could have made the article more credible. Conclusion Two papers were used in the analysis of factors that contribute to slow recovery from the economic downturn. These papers used different approaches and research designs to identify factors that were the major focus of the research. Credibility requires well-articulated objectives and research design. Researchers need to identify an area that requires research. These researchers need to choose a suitable method either qualitative or quantitative method or in another case a mixed method approach to determine the strengths and weaknesses in the research. The Economic recession is thus a problem in the world and requires to be addressed for the economy of the countries of the world. Reference List Anderson, D.R., Sweeney, D.J., Williams, T.A., Camm, J.D. and Cochran, J.J., 2014. Essentials of statistics for business and economics. Cengage Learning. Blecker, R.A., 2014. Economic stagnation in the United States: underlying causes and global consequences. Revista de Economia Política, 34(4), pp.689-725. Bloom, N., 2014. Fluctuations in uncertainty. The Journal of Economic Perspectives, 28(2), pp.153-175. Carballo-Cruz, F., 2011. Causes and consequences of the Spanish economic crisis: Why the recovery is taken so long?. Panoeconomicus, 58(3), pp.309-328. Cynamon, B.Z. and Fazzari, S.M., 2015. Inequality, the Great Recession and slow recovery. Cambridge Journal of Economics, 40(2), pp.373-399. Kagel, J.H. and Roth, A.E. eds., 2016. The Handbook of Experimental Economics, Volume 2: The Handbook of Experimental Economics. Princeton university press. Kochhar, R. and Fry, R., 2014. Wealth inequality has widened along racial, ethnic lines since end of Great Recession. Pew Research Center, 12, pp.1-15. Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach. John Wiley & Sons. Temin, P., 2016. Great Depression. In Banking Crises (pp. 144-153). Palgrave Macmillan UK. Walliman, N., 2015. Social research methods: The essentials. Sage. Read More