Global Economic Crisis And its Transmission Channels: Case Study of the Lithuanian Agricultural Sector
Aleksandras Stulginskis University
Increasingly rapid economic globalization processes expand the dependence of national economies, and thus the risk of the transfer of problems from one country to another. This situation was highlighted by the global economic crisis of 2008–2009, which demonstrated that the fluctuations of economic activity in various channels are transmitted very quickly from one country to another country's economy, including in the agricultural sector. The article, based on the concept of economic globalization and the studies of other researchers, identifies two groups of transmission channels of the global economic crisis: firstly, these are global channels, covering the global commodity price shocks, significant changes in global interest rates, substantial changes in investor behaviour, and secondly, channels specific to each country, comprising the financial and commercial linkages. The methods of statistical analysis were used to analyze the most significant channels of the transmission of the economic crisis in the agriculture sector. It was found that the global economic crisis has affected the Lithuanian agricultural sector by a variety of channels, but in comparison with the Lithuanian economy as a whole, the changes of analysed flows in this sector were smaller.
Keyword(s): global economic crisis; agricultural sector; transmission channels; globalization; market
Management Theory and Studies for Rural Business and Infrastructure Development
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