The resilience of EU Member States to the financial and economic crisis

Based on the JRC conceptual framework for resilience (Manca et al., 2017), this study presents an empirical analysis of the resilience of EU Member States to the recent financial and economic crisis. We ask two main research questions: 1) Which countries demonstrated a resilient behaviour, in terms of both shock absorption during the crisis and recovery in its aftermath? 2) Are there pre-determined country characteristics that help to explain resilient performance? To address these questions, we first select 34 key indicators of economic performance and societal well-being, going well beyond the merely economic growth perspective. Resilience is then measured by the properties of the joint dynamic response of these variables to the crisis shock at different time horizons. Our results demonstrate substantial differences between countries in each of the resilience capacities considered. Regression analysis also reveals that certain deep-seated characteristics – such as government expenditures on social protection, political stability or a favourable business environment – are strongly associated with resilient behaviour. These findings offer lessons for monitoring resilience and provide entry points for effective policy interventions in the future.

ALESSI Lucia;  BENCZUR Peter;  CAMPOLONGO Francesca;  CARIBONI Jessica;  MANCA Anna Rita;  MENYHERT Balint;  PAGANO Andrea; 

2020-06-04

SPRINGER

JRC113585

0303-8300 (online),   

https://link.springer.com/article/10.1007/s11205-019-02200-1,    https://publications.jrc.ec.europa.eu/repository/handle/JRC113585,   

10.1007/s11205-019-02200-1 (online),