IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/117912.html
   My bibliography  Save this paper

Assessing the economic resilience in central and eastern EU countries. A multidimensional approach

Author

Listed:
  • Ifrim, Mihaela
  • Lazorec, Maria
  • Pintilescu, Carmen

Abstract

The concept of economic resilience has become a key topic in the economic literature since the crisis of 2008 and the current sanitary crisis brought back to the attention of researchers the need to identify the elements that allow the absorption of a shock and the economic recovery. In the paper, we study the economic resilience assessed by real GDP growth rate and employment rate for eleven CEECs, using annual data from 2000 to 2019. We include in our model 21 variables that reflect the economic, social and institutional dimensions for emphasizing the specificities of CEE countries. The empirical results show that most of CEE countries proved to be resilient either in both their economic output and employment (Croatia, Czech Republic, Hungary, Romania, Slovenia), or in one of these (Bulgaria, Lithuania, Slovakia). Only two countries appear to not have recovered in GDP growth rate and Employment rate (Estonia and Latvia). The analysis of countries specificities, using the principal component regression, highlighted that the social, economic and institutional framework of each country generated distinct responses in terms of resilience. The strengthening of the institutional dimension and the importance of education represent essential factors for the growth of economic resilience.

Suggested Citation

  • Ifrim, Mihaela & Lazorec, Maria & Pintilescu, Carmen, 2022. "Assessing the economic resilience in central and eastern EU countries. A multidimensional approach," MPRA Paper 117912, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117912
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/117912/1/17__CARMEN.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Huang, Chiung-Ju, 2016. "Is corruption bad for economic growth? Evidence from Asia-Pacific countries," The North American Journal of Economics and Finance, Elsevier, vol. 35(C), pages 247-256.
    2. Aidt, Toke & Dutta, Jayasri & Sena, Vania, 2008. "Governance regimes, corruption and growth: Theory and evidence," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 195-220, June.
    3. Anastasios Kitsos & Paul Bishop, 2018. "Economic resilience in Great Britain: the crisis impact and its determining factors for local authority districts," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 329-347, March.
    4. Elias Giannakis & Adriana Bruggeman, 2020. "Regional disparities in economic resilience in the European Union across the urban–rural divide," Regional Studies, Taylor & Francis Journals, vol. 54(9), pages 1200-1213, September.
    5. Pontarollo, Nicola & Serpieri, Carolina, 2020. "A composite policy tool to measure territorial resilience capacity," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    6. Azmat Gani, 2011. "Governance and Growth in Developing Countries," Journal of Economic Issues, Taylor & Francis Journals, vol. 45(1), pages 19-40.
    7. Ron Martin & Peter Sunley, 2015. "On the notion of regional economic resilience: conceptualization and explanation," Journal of Economic Geography, Oxford University Press, vol. 15(1), pages 1-42.
    8. Randall Jackson & Mulugeta Kahsai & Peter Schaeffer & Mark Middleton & Junbo Yu, 2015. "A Framework for Measuring County Economic Resilience," Working Papers Working Paper 2015-03, Regional Research Institute, West Virginia University.
    9. Diane Coyle, 2014. "GDP: A Brief but Affectionate History," Economics Books, Princeton University Press, edition 1, number 10183.
    10. Paolo Di Caro, 2015. "Recessions, recoveries and regional resilience: evidence on Italy," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 273-291.
    11. Jack Boorman & José Fajgenbaum & Hervé Ferhani & Manu Bhaskaran & Drew Arnold & Harpaul Alberto Kohli, 2013. "The Centennial Resilience Index: Measuring Countries' Resilience to Shock," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 5(2), pages 57-98, May.
    12. Ron Martin, 2012. "Regional economic resilience, hysteresis and recessionary shocks," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 1-32, January.
    13. Grzegorz Masik, 2014. "Economic Resilience To Crisis. The Case Study Of The Pomorskie Region In Poland," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 72-83.
    14. Sara Davies, 2011. "Regional resilience in the 2008--2010 downturn: comparative evidence from European countries," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 4(3), pages 369-382.
    15. Lino Briguglio & Gordon Cordina & Nadia Farrugia & Stephanie Vella, 2009. "Economic Vulnerability and Resilience: Concepts and Measurements," Oxford Development Studies, Taylor & Francis Journals, vol. 37(3), pages 229-247.
    16. Maya Jolles & Eric Meyermans & Borek Vasicek, 2018. "Determinants of economic resilience in the euro area: An empirical assessment of policy levers," Quarterly Report on the Euro Area (QREA), Directorate General Economic and Financial Affairs (DG ECFIN), European Commission, vol. 17(3), pages 27-46, December.
    17. Jack Boorman & José Fajgenbaum & Hervé Ferhani & Manu Bhaskaran & Drew Arnold & Harpaul Alberto Kohli, 2013. "The Centennial Resilience Index: Measuring Countries’ Resilience to Shock," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 5(2), pages 57-98, May.
    18. Florin Oprea & Mihaela Onofrei & Dan Lupu & Georgeta Vintila & Gigel Paraschiv, 2020. "The Determinants of Economic Resilience. The Case of Eastern European Regions," Sustainability, MDPI, vol. 12(10), pages 1-11, May.
    19. Marianne Sensier & Gillian Bristow & Adrian Healy, 2016. "Measuring Regional Economic Resilience across Europe: Operationalizing a complex concept," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(2), pages 128-151, June.
    20. Bernard Fingleton & Harry Garretsen & Ron Martin, 2012. "Recessionary Shocks And Regional Employment: Evidence On The Resilience Of U.K. Regions," Journal of Regional Science, Wiley Blackwell, vol. 52(1), pages 109-133, February.
    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. Linus Holtermann & Christian Hundt, 2018. "Hierarchically structured determinants and phase related patterns of economic resilience. An empirical case study for European regions," Working Papers on Innovation and Space 2018-02, Philipps University Marburg, Department of Geography.
    2. George J. XANTHOS & Evangelos N. DULUFAKIS, 2023. "Measurement Approaches Of Regional Economic Resilience: A Literature Review," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 47-59, June.
    3. Giuseppe Terzo, 2021. "Social capital, social economy and economic resilience of Italian provinces," Papers in Regional Science, Wiley Blackwell, vol. 100(5), pages 1113-1135, October.
    4. Pontarollo, Nicola & Serpieri, Carolina, 2020. "A composite policy tool to measure territorial resilience capacity," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    5. Philip Watson & Steven Deller, 2022. "Tourism and economic resilience," Tourism Economics, , vol. 28(5), pages 1193-1215, August.
    6. Xin Mai & Roger C. K. Chan & Chaoqun Zhan, 2019. "Which Sectors Really Matter for a Resilient Chinese Economy? A Structural Decomposition Analysis," Sustainability, MDPI, vol. 11(22), pages 1-17, November.
    7. Hasan Engin Duran & Ugo Fratesi, 2023. "Economic resilience and regionally differentiated cycles: Evidence from a turning point approach in Italy," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 219-252, April.
    8. Wang, Xueli & Wang, Lei & Zhang, Xuerong & Fan, Fei, 2022. "The spatiotemporal evolution of COVID-19 in China and its impact on urban economic resilience," China Economic Review, Elsevier, vol. 74(C).
    9. Ugo Fratesi & Giovanni Perucca, 2018. "Territorial capital and the resilience of European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 241-264, March.
    10. Giulio Cainelli & Roberto Ganau & Marco Modica, 2019. "Does related variety affect regional resilience? New evidence from Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(3), pages 657-680, June.
    11. Fabio Mazzola & Iolanda Cascio & Rosalia Epifanio & Giuseppe Giacomo, 2018. "Territorial capital and growth over the Great Recession: a local analysis for Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 411-441, March.
    12. Michele Costa & Flavio Delbono, 2021. "The Italian Geography of Regional Resilience: The Role of Cooperative Firms," Working Papers wp1166, Dipartimento Scienze Economiche, Universita' di Bologna.
    13. Pietro Pizzuto, 2020. "The role of regional competitiveness in shaping the heterogeneous impact of the Great Recession," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(2), pages 267-290, April.
    14. Paulo Henrique Cezaro Eberhardt & Adelar Fochezatto, 2024. "Regional Resilience and the Asymmetric Effects of the 2008 Crisis in Brazil: A Survival Model Analysis," Networks and Spatial Economics, Springer, vol. 24(3), pages 743-762, September.
    15. Filippo Di Pietro & Patrizio Lecca & Simone Salotti, 2021. "Regional economic resilience in the European Union: a numerical general equilibrium analysis," Spatial Economic Analysis, Taylor & Francis Journals, vol. 16(3), pages 287-312, July.
    16. Kitsos, Anastasios & Grabner, Simone Maria & Incera, Andre Carrascal, 2022. "The role of embeddedness in regional economic resistance," SocArXiv b759j, Center for Open Science.
    17. Suat Tuysuz & Tüzin Baycan & Fatih Altuğ, 2022. "Economic impact of the COVID-19 outbreak in Turkey: analysis of vulnerability and resilience of regions and diversely affected economic sectors," Asia-Pacific Journal of Regional Science, Springer, vol. 6(3), pages 1133-1158, October.
    18. Alina G. PROFIROIU & Cristina ȘERBĂNICĂ & Corina-Cristiana NASTACĂ & Daniela- Luminița CONSTANTIN, 2024. "Resilience through the lens of decision-makers: Spatial diversities, adaptive capacity and transformation through multi-level governance," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 16(2), pages 48-65, June.
    19. Kaiming Cheng & Xinyu Wang & Shucheng Liu & Yanjie Zhuang, 2024. "Spatial differences and dynamic evolution of economic resilience: from the perspective of China’s eight comprehensive economic zones," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-33, April.
    20. Roberto Cellini & Tiziana Cuccia, 2019. "Do behaviours in cultural markets affect economic resilience? An analysis of Italian regions," European Planning Studies, Taylor & Francis Journals, vol. 27(4), pages 784-801, April.

    More about this item

    Keywords

    economic resilience; principal component regression; CEE economies.;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:117912. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.