Economic Vulnerability and Resilience to Shocks – An Attempt to Measure

Abstract

Abstract Especially in periods of crises, economists try to explain why some economies suffer negative consequences more strongly than others. In order to explain these differential effects, two economic categories known as economic vulnerability and economic resilience can be used. Hence, the aim of the paper is to undertake a critical reflection on the interrelated categories of economic vulnerability and resilience to shocks. The paper analyses these categories from a theoretical perspective and identifies the factors that shape each of them. It then attempts to measure the economic vulnerability and resilience of selected European countries using two synthetic variables. Based on these, a classification of countries in terms of economic vulnerability and resilience was made. The results achieved provide a good starting point for a more detailed study of the paths of crises and their consequences in individual countries.