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Investigating the relationship between geopolitical risks and economic security: Empirical evidence from central and Eastern European countries

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  • Khan, Khalid
  • Khurshid, Adnan
  • Cifuentes-Faura, Javier

Abstract

The study employs panel bootstrap Granger causality to investigate the relationship between geopolitical risks and economic security in Central and Eastern European countries. The findings reveal that geopolitical risks have a meaningful impact on economic security in several countries, such as the Czech Republic, Hungary, Latvia, Lithuania, Poland, and Slovakia. Furthermore, the results imply that changes in geopolitical risks can significantly influence economic and social outcomes in these countries. Additionally, the study demonstrates that economic security significantly affects geopolitical risks in the Czech Republic, Hungary, Latvia, Poland, Slovenia, and Slovakia, driven by various domestic and international factors. Therefore, vulnerable countries need to assess risks and develop contingency plans, while policymakers should prioritize democracy and social cohesion, reduce inequality and instability.

Suggested Citation

  • Khan, Khalid & Khurshid, Adnan & Cifuentes-Faura, Javier, 2023. "Investigating the relationship between geopolitical risks and economic security: Empirical evidence from central and Eastern European countries," Resources Policy, Elsevier, vol. 85(PA).
    • Handle: RePEc:eee:jrpoli:v:85:y:2023:i:pa:s0301420723005834
    DOI: 10.1016/j.resourpol.2023.103872
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    Cited by:

    1. Hu, Zinan & Borjigin, Sumuya, 2024. "The amplifying role of geopolitical Risks, economic policy Uncertainty, and climate risks on Energy-Stock market volatility spillover across economic cycles," The North American Journal of Economics and Finance, Elsevier, vol. 71(C).
    2. António Afonso & José Alves & Sofia Monteiro, 2024. "Echoes of Instability: How Geopolitical Risks Shape Government Debt Holdings," CESifo Working Paper Series 11235, CESifo.
    3. Afonso, António & Alves, José & Monteiro, Sofia, 2024. "Beyond borders: Assessing the influence of Geopolitical tensions on sovereign risk dynamics," European Journal of Political Economy, Elsevier, vol. 83(C).
    4. Jiang, Wei & Zhang, Yanyu & Wang, Kai-Hua, 2024. "Analyzing the connectedness among geopolitical risk, traditional energy and carbon markets," Energy, Elsevier, vol. 298(C).
    5. Khurshid, Adnan & Khan, Khalid & Rauf, Abdur & Cifuentes-Faura, Javier, 2024. "Effect of geopolitical risk on resources prices in the global and Russian-Ukrainian context: A novel Bayesian structural model," Resources Policy, Elsevier, vol. 88(C).
    6. António Afonso & José Alves & Sofia Monteiro, 2024. "The pressure is on: how geopolitical tensions impact institutional fiscal and external stability responses," Working Papers REM 2024/0318, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    7. Khan, Khalid & Su, Chi Wei & Khurshid, Adnan & Qin, Meng, 2023. "Does energy security improve renewable energy? A geopolitical perspective," Energy, Elsevier, vol. 282(C).
    8. Mengxuan, Tian & Khan, Khalid & Cifuentes-Faura, Javier & Sukumaran, Sheiladevi, 2024. "Technological innovation and energy efficiency in central Eastern European countries," Utilities Policy, Elsevier, vol. 88(C).

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    More about this item

    Keywords

    Geopolitical risk; Economic security; Energy security; Political instability; Panel bootstrap causality;
    All these keywords.

    JEL classification:

    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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