Understanding the <scp>globalization‐crisis</scp> linkage: A “differenced” approach

The recent string of adverse global shocks (financial crisis, trade war, COVID-19, Ukraine war) poses a potential challenge to the well-known welfare enhancing effects globalization, necessitating better understanding longer run globalization-crisis linkage as opposed its shorter effects. Focusing on Great Recession, we discover an evolving role and financial openness from one that propagates deepens negative crises confirms well-established contributions. Key this is generating counterfactual output for open countries if they were closed examining comparative impact crisis.