We aim to delve into the key challenges confronting business leaders and economic policy makers in the post-great recession period by bringing together theoretical and empirical research on business and economics in both developed and developing countries. Namely, the adverse effects of the latest financial crisis and the accompanying great recession have not only prevented a strong and fast recovery but have also seriously questioned the ability of major world economies to return to their stable and balanced growth path. As a consequence, serious challenges to established economic and business theories and their policy prescriptions have been created. Hence, our intention is to broaden discussions and create a forum for the exchange of ideas about economic and business future. In other words, we are seeking scientific papers which would present substantial responses to the intellectual and practical economic and business challenges. Such challenges range from how to redesign macroeconomic policies to how to set up regulatory reforms and reinvent the business models so that markets, firms and governments can work together to ensure future sustainable economic growth and job creation.
Economic memories are often short, which may be one reason why financial crises and bubbles tend to recur with such frequency (Keeley and Love, 2010). The global economy is by now emerging from the largest shock and the most severe disruption in the post-war era. Following years characterised by strong global growth and increasing international trade and financial linkages, the implosion in advanced economies’ financial centres, culminating with the demise of Lehman Brothers bank in September 2008, spilt over into emerging market economies as well. As a result, the growth of the global economy fell by 6 percentage points from its pre-crisis peak to its trough in 2009, the largest straight fall in global growth in the post-war era. Similarly, the real output in emerging markets fell about 4 percent between 2008Q3 and 2009Q1, the period of the most intense crisis (Llaudes, Salman & Chivakul, 2010). Another legacy of the recession is high levels of public debts. Governments borrowed heavily during the crisis to keep financial institutions afloat, to avoid the liquidity trap and to stimulate activity. In addition, against a background of government support for the financial markets and institutions, many people turned a blind eye to basic issues of business ethics and regulation (Keeley and Love, 2010). Consequently, the key question is very simple, yet still unsettled: can governmental policies create sustainable growth and jobs?
The dramatic crisis of 2007-2008 and the extended stagnation that followed seemed to have caught most economists by surprise. After the end of the Volcker disinflation in 1983 and through the end of 2007, growth in the world economy proceeded steadily, interrupted only by two minor recessions starting in 1990 and in 2001. During those years, economists talked about the great moderation (Galí & Gambetti, 2009; Feldstein, 2010). However, the great recession, which began in the United States in December 2007, came as a shock. Once again, economists and the public began to ask some fundamental questions about what kind of economic policy can stabilise the economic fluctuations and cycles (Hetzel, 2012). In this context, the crisis has transformed economic policy, both its implementation and how it is perceived by mainstream economists. For instance, the Fed under Bernanke has cut short-term interest rates to zero for an extended period and pursued lender-of-last-resort interventions. Additionally, mainstream macroeconomic thinking (Galbraith, 2008; Blanchard, 2009) may be shifting in another important but less obvious way. As economists digest the dramatic events of recent years, the relevance of the so-called new consensus (Woodford, 2009; Arestis, 2009) approach to macroeconomics seems to be fading. Some models adopt the microfoundations methods of new classical research, but price stickiness leads to short-run monetary non-neutrality. Does one model fit all? Which model is the best? These are some of the most topical questions in the contemporary times (Kocherlakota, 2010; Cynamon, Fazzari & Setterfield, 2013). Some prominent economists believe that during the last crisis, economists failed the country (Taylor, 2009b), and indeed the world (Kocherlakota, 2010).
Global understanding of the causes and consequences for such economic and business slumps is an issue of the highest priority (Cooper, 2008; Taylor, 2009; Reinhart & Rogoff, 2009; Blundell-Wignall & Atkinson, 2009; Keeley & Love, 2010) Cynamon, Fazzari & Setterfield, 2012; Galbraith, 2012; Hetzel, 2012 Reinhart & Rogoff, 2014). In this context, we will attempt to attract state of the art papers which address the various business and economic challenges after the great recession, as well as offer coherent policy recommendations. The wide variety of topics within the business and economics should be one of the key values of this publication.
In order to deeply explore the growth prospects of businesses and economies, it is of huge importance to discover the main drivers of the behaviour of companies during and after the great recession (Mora & Akhter, 2012). Also, we invite and encourage the authors to develop some prescriptions which could help businesses overcome the current difficulties and vulnerabilities in the globalised economic environment.
Finally, we sincerely hope that this special issue will be of use to researchers, academics and practitioners seeking to improve their understanding of the causes and consequences of the great recession, and more importantly, to get a clue about the current business and economic challenges in the post-great recession period. Furthermore, we should establish an effective channel of communication between academia, policy makers, and entrepreneurs. In other words, we invite researchers, scholars, postgraduate students, managers, government officials, politicians, entrepreneurs, investors, and policy-makers to submit papers and to participate in this endeavour.
The target group includes researchers with a diverse background in entrepreneurship, management, public economics, and other fields in business and economics. More specifically, we aim to attract theoretical and empirical research which will offer scientific insights into the following issues:
- The issue of main drivers of the long-term economic growth (Wahab, 2004; Liu, Hsu, & Younis, 2008; Taylor, Proaño, de Carvalho & Barbosa, 2012) and how to improve the productive potential of the economies, whilst also taking into consideration the income distribution effects; the new context for the conduct of the monetary policy and new modes and instruments for its implementation (Arestis & Karakitsos, 2009; Ali & Anwar, 2010)
- The issue of providing for fiscal discipline in the age of the crisis-related fiscal expansionism (Forni, Gerali & Pisani, 2010; Seccareccia, 2012; Alesina, Favero & Giavazzi, 2012; Bagaria, Holland & Van Reenen, 2012; Heylen, Hoebeeck & Buyse, 2013)
- How to build a truly stable and efficient financial system (Sabri, 2009)
- How can enterprises restructure their business models to optimally adapt to the post-crisis changes in the global business environment (Teece, 2010; McGrath, 2013)
- How to invigorate entrepreneurship, SME sector development and job creation, particularly for the unemployed youth, and etc (Dana, 1991; Dana, 1996; Dana, Etemad & Wright, 1999; Trott, 2005; Dana et al, 2008; Etemad, 2008; Dana, 2001; Huy & Mintzberg, 2003; Karami, 2007; Tucker, 2008; Carayannis & Campbell, 2009; Dana, 2011; Maehler, Curado, Pedrozo & Pires, 2011; Carayannis, Barth & Campbell, 2012; O'Regan, 2012; O'Regan, Kling, Ghobadian & Perren, 2012; Hohmann, 2013; Ranga & Etzkowitz, 2013).
Both theoretical and empirical studies are invited, and both quantitative and qualitative approaches are welcomed. We will include papers dedicated to various aspects of business sector restructuring in the post-crisis environment (Jha & Bhattacharyya, 2014), structural policy reforms for sustainable long-term growth, monetary and fiscal policy reforms, globalisation (Johanson & Vahlne, 1990; Gopinath, 2012) and the effects of international capital flows (Sauvant, 2008; Ramamurti, 2011; Kovač, Palić & Mihanović, 2012; Mamuti & Özgüner, 2014).
Suitable topics include, but are not limited to, the following:
- Business and competitiveness in a global economy
- Contemporary business and economic debates
- Determinants of foreign direct investment
- Economic contribution of SMEs
- Innovation and economic growth
- Innovation ecosystem
- Internationalisation of SMEs
- Entrepreneurship and its public policy support
- Emerging economies
- Fiscal consolidation after the great recession
- Globalisation and its economic consequences
- Growth prospects and sustainable development
- Importance of intellectual property protection
- Monetary policy and macroeconomic stability
- Models of organisational development
- Nature of economic cycles
- Regional development
- Regional integration and economic integration processes
- Trade liberalisation processes
Submission of manuscripts: 20 June, 2017
Notification to authors: 21 August, 2017
Final versions due: 23 October, 2017
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