IDEAS home Printed from https://ideas.repec.org/a/krk/eberjl/v1y2013i3p21-33.html
   My bibliography  Save this article

Relationship between Economic Security and Country Risk Indicators in EU Baltic Sea Region Countries

Author

Listed:
  • Jelena Stankevičiene

    (Vilnius Gediminas Technical University)

  • Tatjana Sviderske

    (Vilnius Gediminas Technical University)

  • Algita Miečinskiene

    (Vilnius Gediminas Technical University)

Abstract

The globalization phenomenon raises new challenges in terms of country risk and economic security for small open economies. The objective of this paper is to evaluate the relationship between economic security and country risk indicators in EU Baltic Sea region countries. This paper, after surveying definitions and typologies of risks, proposes the analysis of the relationship between economic security and country risk in EU Baltic Sea region countries based on statistical data from 2012. The results were optimized by implementing MOORA (Multi-Objective Optimization by Ratio analysis) and MULTIMOORA (MOORA plus Full Multiplicative Form) methods. Findings provide evidence for economic security being dependent on country risk ratios. This result is robust with respect to the applied method of investigation. It is crucial to identify the potential for different types of risks, security indicators as well as methods for risk evaluation and assessment. The key variables of interest include domestic economic variables, macroeconomic policy evaluation, balance of payments stability and social indicators. A general sustainability context (monetary, social and environmental indicators) should be also taken into consideration. Several investigations come to strongly conclusive results, which could be used in creating a new model for country risk assessment and the derived economic security indicators for EU Baltic Sea region countries.

Suggested Citation

  • Jelena Stankevičiene & Tatjana Sviderske & Algita Miečinskiene, 2013. "Relationship between Economic Security and Country Risk Indicators in EU Baltic Sea Region Countries," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 1(3), pages 21-33.
    • Handle: RePEc:krk:eberjl:v:1:y:2013:i:3:p:21-33
    as

    Download full text from publisher

    File URL: http://eber.uek.krakow.pl/index.php/eber/article/download/17/20
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andrew Sharpe & Lars Osberg, 2009. "New Estimates of the Index of Economic Well-being for Canada and the Provinces, 1981 - 2008," CSLS Research Reports 2009-10, Centre for the Study of Living Standards.
    2. Kesternich, Iris & Schnitzer, Monika, 2010. "Who is afraid of political risk? Multinational firms and their choice of capital structure," Journal of International Economics, Elsevier, vol. 82(2), pages 208-218, November.
    3. Rehm, Philipp & Hacker, Jacob S. & Schlesinger, Mark, 2012. "Insecure Alliances: Risk, Inequality, and Support for the Welfare State," American Political Science Review, Cambridge University Press, vol. 106(2), pages 386-406, May.
    4. Vincenzo Quadrini, 2011. "Financial frictions in macroeconomic fluctations," Economic Quarterly, Federal Reserve Bank of Richmond, vol. 97(3Q), pages 209-254.
    5. Kenneth Scheve & Matthew Slaughter, 2002. "Economic Insecurity and the Globalization of Production," NBER Working Papers 9339, National Bureau of Economic Research, Inc.
    6. Miśkiewicz, Janusz & Ausloos, Marcel, 2010. "Has the world economy reached its globalization limit?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(4), pages 797-806.
    7. Bordo, Michael D. & Meissner, Christopher M. & Weidenmier, Marc D., 2009. "Identifying the effects of an exchange rate depreciation on country risk: Evidence from a natural experiment," Journal of International Money and Finance, Elsevier, vol. 28(6), pages 1022-1044, October.
    8. Busse, Matthias & Hefeker, Carsten, 2007. "Political risk, institutions and foreign direct investment," European Journal of Political Economy, Elsevier, vol. 23(2), pages 397-415, June.
    9. Susan K. Schroeder, 2008. "The Underpinnings Of Country Risk Assessment," Journal of Economic Surveys, Wiley Blackwell, vol. 22(3), pages 498-535, July.
    10. repec:fip:fedreq:y:2011:i:3q:p:209-254:n:vol.97no.3 is not listed on IDEAS
    11. Marshall, Andrew & Maulana, Tubagus & Tang, Leilei, 2009. "The estimation and determinants of emerging market country risk and the dynamic conditional correlation GARCH model," International Review of Financial Analysis, Elsevier, vol. 18(5), pages 250-259, December.
    12. Ratha, Dilip & De, Prabal K. & Mohapatra, Sanket, 2011. "Shadow Sovereign Ratings for Unrated Developing Countries," World Development, Elsevier, vol. 39(3), pages 295-307, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Couttenier, Mathieu & Toubal, Farid, 2017. "Corruption for sales," Journal of Comparative Economics, Elsevier, vol. 45(1), pages 56-66.
    2. Gonchar, Ksenia & Greve, Maria, 2022. "The impact of political risk on FDI exit decisions," Economic Systems, Elsevier, vol. 46(2).
    3. Osswald, Benjamin & Sureth, Caren, 2018. "Do country risk factors attenuate the effect of taxes on corporate risk-taking?," arqus Discussion Papers in Quantitative Tax Research 235, arqus - Arbeitskreis Quantitative Steuerlehre.
    4. Pacific K. T. Yapatake & Shan J. Li, 2018. "Economic Security and Political Governance Crisis in the Central African Republic," CEREDEC Working Papers 18/001, Centre de Recherche pour le Développement Economique (CEREDEC).
    5. Das, Udaibir S. & Papaioannou, Michael G. & Trebesch, Christoph, . "Sovereign Default Risk and Private Sector Access to Capital in Emerging Markets," Chapters in Economics,, University of Munich, Department of Economics.
    6. Ivan Deseatnicov & Hiroya Akiba, 2013. "Reconsideration of the Effects of Political Factors on FDI: Evidence from Japanese Outward FDI," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 35-48, February.
    7. Tuğba Akın, 2019. "The Effects of Political Stability on Foreign Direct Investment in Fragile Five Countries," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 11(4), pages 237-255, December.
    8. King, Timothy & Loncan, Tiago & Khan, Zaheer, 2021. "Investment, leverage and political risk: Evidence from project-level FDI," Journal of Corporate Finance, Elsevier, vol. 67(C).
    9. Thales Pacific Yapatake Kossele & Li Jin Shan, 2018. "Economic Security and the Political Governance Crisis in Central African Republic," African Development Review, African Development Bank, vol. 30(4), pages 462-477, December.
    10. Lars Osberg, 2009. "Measuring Economic Security in Insecure Times: New Perspectives, New Events, and the Index of Economic Well-being," CSLS Research Reports 2009-12, Centre for the Study of Living Standards.
    11. Dani Rodrik, 2018. "Populism and the economics of globalization," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 12-33, June.
    12. Akhtaruzzaman, Muhammad & Berg, Nathan & Lien, Donald, 2017. "Confucius Institutes and FDI flows from China to Africa," China Economic Review, Elsevier, vol. 44(C), pages 241-252.
    13. Balima, Hippolyte Weneyam, 2020. "Coups d’état and the cost of debt," Journal of Comparative Economics, Elsevier, vol. 48(3), pages 509-528.
    14. Jingyuan Hou & Zhonghai Cheng & Xinshu Gong, 2022. "The Effect of Exports and Two-Way Foreign Direct Investment between China and Pan-East Asian Countries," Sustainability, MDPI, vol. 14(24), pages 1-19, December.
    15. Balima, Wenéyam Hippolyte & Combes, Jean-Louis & Minea, Alexandru, 2017. "Sovereign debt risk in emerging market economies: Does inflation targeting adoption make any difference?," Journal of International Money and Finance, Elsevier, vol. 70(C), pages 360-377.
    16. Hartwell, Christopher A., 2014. "The impact of institutional volatility on financial volatility in transition economies : a GARCH family approach," BOFIT Discussion Papers 6/2014, Bank of Finland, Institute for Economies in Transition.
    17. Bernhard G. GUNTER & Rolph HOEVEN, 2004. "The social dimension of globalization: A review of the literature," International Labour Review, International Labour Organization, vol. 143(1-2), pages 7-43, March.
    18. Lin, Wenlian & Cao, Jerry & Zhou, Sili & Li, Yong, 2024. "Political affinity, multilateralism, and foreign direct investment worldwide," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 94(C).
    19. Rungmaitree, Pattamon & Boateng, Agyenim & Ahiabor, Frederick & Lu, Qinye, 2022. "Political risk, hedge fund strategies, and returns: Evidence from G7 countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 81(C).
    20. Azzimonti, Marina, 2019. "Does partisan conflict deter FDI inflows to the US?," Journal of International Economics, Elsevier, vol. 120(C), pages 162-178.

    More about this item

    Keywords

    Economic security; globalization; EU Baltic Sea region; MULTIMOORA;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:krk:eberjl:v:1:y:2013:i:3:p:21-33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Piotr Stanek, PhD. (email available below). General contact details of provider: https://edirc.repec.org/data/aekrapl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.