Economic Impacts of the burst of the Dot-com-bubble

The classical assumption that an economic
downturn is 'V-shaped' in the US and more 'Ushaped' in the
Netherlands is refuted in this paper by analyzing the
downturn that followed the dot-com-bubble. The duration is
longer in the Netherlands, while the depth is certainly not
smaller. Another interesting observation is that the start
of the downturn occurred at a later point in time than in
the US. The analysis of several macroeconomic variables and
the differences in the sectoral dynamics show that the
dynamics of the downturn can be explained by the importance
of the exogenous shock of exports on the Business Cycle.
The conclusion regarding this specific analyzed downturn is
that the downturn in the Dutch economy is not that much
directly related to the burst of the bubble. In stead, the
economy seemed to be affected by the consequences of the
burst for international trade and so Dutch exports. The US
seemed to be the epicentre of the burst which had a
significant influence on the World Business Cycle through
the US role in international trade. These observations are
again seen in the latest internationally spread downturn.