The Global Implications of Ecotourism in Emerging Economies

2. The Global Financial Crisis And Its Implications For Emerging Countries

The transmission patterns of financial foreign shocks from advanced to emerging economies and long-run causal linkages between international markets highlight the importance of a functional and stable financial environment. This unstable situation appears to be supported by the fact that international markets became more and more correlated, specifically between advanced and emerging countries due to international financial integration. Seemingly insignificant structural imbalances can easily generate dramatic consequences in the context of a globalized and integrated worldwide perspective. In recent past, emerging market economies gradually become more interdependent, but also much vulnerable because of spillover effects (externalities) and international financial contagion. Moreover, a central characteristic of most emerging countries is the chaotic and unpredictable movement of future growth patterns. It is also very important to investigate the transmission mechanism and the degree of international financial interdependence in order to understand the complex behavior of emerging economies.

In literature, a large amount of empirical evidence has suggested certain common patterns across emerging countries. Financial vulnerability represents a very important challenge in terms of globalization. The vulnerability of emerging markets and their high level of exposure to potential financial crisis can be reduced by implementing rigorous measures. Furthermore, the major role of ecotourism in emerging countries is explicitly defined as a very accessible and reliable opportunity to progress especially in the context of extreme events such as the global financial crisis.

The international financial system, especially stock markets were significantly affected by extreme events in recent decades. International terrorism represents a significant challenge in the context of current economic globalization. Practically, it is a worldwide phenomenon which is expanding rapidly and cause major adverse effects on the stability of financial markets. The dramatic impact of the global financial crisis has amplified the interest of academics, practitioners, investors and business circles to the subject of ecotourism. Moreover, the global implications of ecotourism in emerging economies provide significant growth opportunities and attenuate development gaps through investment in these countries. In recent past, the intensity of interdependence among developed and developing (emerging) economies reveals that geographical barriers represent just a minor milestone in the context of globalization.