Mehdi Zibaei
Abstract
According to the International Monetary Fund forecasts, the Middle Eastern economy will shrink by 5.2 percent in 2020 compared to the previous year due to Covid-19. These statistics, which are just one part of the devastating result of the spread of the corona virus in the international arena, show the ...
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According to the International Monetary Fund forecasts, the Middle Eastern economy will shrink by 5.2 percent in 2020 compared to the previous year due to Covid-19. These statistics, which are just one part of the devastating result of the spread of the corona virus in the international arena, show the most unprecedented recession in the Middle East. Although the initiative of governments to restrict social mobility has curbed the spread of the virus in question, it also disrupts the production process and deepens destitution in the region. The question now is how the quarantine programs of the regional governments have caused the GDP reduction and the domestic recession. It seems that the implementation of control programs to prevent the spread of the corona virus at both the regional and international levels has disrupted the global value chain. On the one hand, this situation disrupted the supply of goods and services in domestic economies, and on the other hand, it reduced demand on a large scale. The crystallization of the existing conditions can be well seen in the declining trend of investment and foreign trade, falling oil prices, remittances and the tourism industry in the region more than other sectors. In the light of the theory of interdependence from the subset of liberal international political economy and in the framework of the quantitative analysis method based on figures and statistical data provided by international monetary institutions over the past year, this article intends to examine the effects of internal and external control constraints of governments on the Middle Eastern economy.
