Global Financial Crisis and the Industrial Development (Dissertation Sample)

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The Impact of the Global Financial Crisis on the Industrial Development of Least Developed Countries
(Your name)
A thesis submitted in partial fulfilment for the award of Masters in Finance in (faculty name) in the (university name)
Supervisor:
September 2015

Declaration
This thesis is my original work and has not been presented for a degree in any other university
Signature Date
This thesis has been submitted for examination with my approval as the University Supervisor
Signature Date
Abstract
The global financial Crisis was an event that occurred in 2008 that caused devastating effects to the economies of developed countries. However, its impact on Least Developed Countries is not well understood. This study carries out a meta-analysis of studies carried to determine the effects of the crisis. We use case study design to determine the impact of the Crisis, by analyzing its impact on Angola, Sierra Leone, Uganda and Tanzania. We quantify the effects by using a Pre-post analysis Design to ascertain the state of their economies before and after the 2008 Crisis. The results are then generalized to all LDCs in Africa. The Study reveals that the 2008 Crisis did not severely impact these countries. This was mainly because of their poor integration into the world markets and their relative underdeveloped state of their industries. The limitations of the study were the absence of data in some cases. Some of the data collected was not up to date.
Contents TOC \o "1-3" \h \z \u Declaration PAGEREF _Toc432803753 \h 2Abstract PAGEREF _Toc432803754 \h 3List of Tables PAGEREF _Toc432803755 \h 7List of Figures PAGEREF _Toc432803756 \h 81.Chapter 1 Introduction PAGEREF _Toc432803757 \h 91.1Background of the Study PAGEREF _Toc432803758 \h 91.2Statement of the problem PAGEREF _Toc432803759 \h 131.3Objectives PAGEREF _Toc432803760 \h 151.3.1General objective PAGEREF _Toc432803761 \h 151.3.2Specific Objectives PAGEREF _Toc432803762 \h 151.4Research Questions PAGEREF _Toc432803763 \h 161.5Justification of the Study PAGEREF _Toc432803764 \h 161.6Scope of the Study PAGEREF _Toc432803765 \h 172.Chapter 2 Literature Review PAGEREF _Toc432803766 \h 172.1Introduction PAGEREF _Toc432803767 \h 172.2Theoretical Review/Conceptual Framework PAGEREF _Toc432803768 \h 172.2.1Least Developed Countries PAGEREF _Toc432803769 \h 172.2.2Social Economic Structure of Least Developed Countries in Africa PAGEREF _Toc432803770 \h 202.2.3Structure of the Global Economy PAGEREF _Toc432803772 \h 242.2.4Global Financial Crisis of 2008 PAGEREF _Toc432803773 \h 272.2.5The remedies taken to curb it PAGEREF _Toc432803774 \h 292.2.6The impact on the Industries Least Developed Countries PAGEREF _Toc432803775 \h 302.3Critique of Existing Literature and Previous studies PAGEREF _Toc432803776 \h 332.4Summary PAGEREF _Toc432803777 \h 352.5Research Gaps PAGEREF _Toc432803778 \h 363.Chapter 3 Methodology PAGEREF _Toc432803779 \h 373.1Research Design PAGEREF _Toc432803780 \h 373.1.1Case study design PAGEREF _Toc432803781 \h 373.1.2Pre-post Analysis PAGEREF _Toc432803782 \h 373.2Population PAGEREF _Toc432803783 \h 383.3Sampling Frame PAGEREF _Toc432803784 \h 383.4Sample and Sample Technique PAGEREF _Toc432803785 \h 383.5Data Collection Procedure PAGEREF _Toc432803786 \h 393.6Data Processing and Analysis PAGEREF _Toc432803787 \h 394.Chapter 4 Results and Discussion PAGEREF _Toc432803788 \h 404.1.1Angola PAGEREF _Toc432803789 \h 404.1.2Sierra Leone PAGEREF _Toc432803790 \h 404.1.3Tanzania PAGEREF _Toc432803791 \h 414.1.4Uganda PAGEREF _Toc432803792 \h 414.2Annual GDP Growth Rates PAGEREF _Toc432803793 \h 424.3Exports PAGEREF _Toc432803794 \h 444.4Human Development PAGEREF _Toc432803795 \h 454.5Foreign Direct Investment PAGEREF _Toc432803796 \h 464.6Remittances PAGEREF _Toc432803797 \h 474.7Commodity Prices PAGEREF _Toc432803798 \h 484.8Tourism PAGEREF _Toc432803799 \h 504.9Discussion and Generalization PAGEREF _Toc432803800 \h 515.Chapter 5 Summary, Conclusions and Recommendation PAGEREF _Toc432803801 \h 535.1Introduction PAGEREF _Toc432803802 \h 535.2Summary PAGEREF _Toc432803803 \h 535.3Conclusions PAGEREF _Toc432803804 \h 555.4Recommendations PAGEREF _Toc432803805 \h 566.References PAGEREF _Toc432803806 \h 60
List of Tables
Table 1: External Debt…………………………………………………………………………...12
Table 2: List of African LDCs’ Gross domestic income per capita (GDP)……………...………21
Table 3: Table of African LDCs percentage of GDP in exports and imports……………...…….22
Table 4: Human Development…………………………………………………………………...44
Table 5: Foreign Direct Investment ……………………………………………………………..45
Table 6: Remittances……………………………………………………………………………..46
List of Figures
Figure 1: Comparison of the GDPs of Angola and Sierra Leone…………………….………….40
Figure 2: Comparison of the GDPs of Uganda and Tanzania………….………………………..41
Figure 3: Annual GDP growth rates for Uganda and Tanzania…………………….……………41
Figure 4: Annual GDP growth rates for Angola and Sierra Leone………………………………43
Figure 5: Exports for Angola and Sierra Leone………………………………………………….43
Figure 6: Exports for Uganda and Tanzania...........................................................................…...45
Figure 7: Historical Crude Oil Prices......................................................................................…...47
Figure 8: Diesel Oil Prices per Litre..............................................................................................48
Figure 9: Historical Gold Prices....................................................................................................49
Figure 10: Tourist Arrivals in ‘000................................................................................................49
Chapter 1 Introduction
Background of the Study
The Global Financial Crisis of 2008 has been reported by economists to be the worst financial crisis ever since the Great Depression of 1929 CITATION Jam09 \l 1033 (Crotty, 2009). In fact Ben Bernanke, a prominent American economist and former chairman of the United States Federal Reserve Bank, the equivalent of the central bank, has even argued that the crisis was worse than the Great Depression, as reported by Forbes CITATION For14 \l 1033 (Forbes, 2014). Our saving grace was the extensive academic research that had been carried out concerning the great depression hence; economists had a good theoretical framework for the progression and course of a depression and thus were able to apply remedies CITATION Jus08 \l 1033 (Lin, 2008). Had it not been for this knowledge, the Financial Crisis of 2008 could have resulted into the worst depression in human history. The crisis resulted in to a loss over $2.4 trillion in United States financial institutions alone CITATION Fre12 \l 1033 (Thrift, et al., 2012). This crisis crossed national borders and affected the financial systems of other countries, leading in losses to their investors too.
Due to the integration of financial systems worldwide and the central position of the United State’s economy hold in world economics CITATION Jus08 \l 1033 (Lin, 2008), what began as a mortgage crisis in the U.S quickly escalated to epic proportions as financial institutions worldwide teetered and toppled in its wake. The European Union reported their economy was in critical condition (Constancio, 2012). Iceland experienced an economic collapse when all its major banks failed (Wade & Sigurgeirsdottir, 2011, pp. 128-129) and a majority of the world’s economies reported slowdown in their economic growth and even negat...