Business Cycles in European Post-Communist Countries

Contemporary Economics, Vol. 11, No. 2, pp. 171-186, 2017

16 Pages Posted: 24 May 2018

See all articles by Karol Szomolányi

Karol Szomolányi

University of Economics in Bratislava - Department of Operations Research and Econometrics

Martin Lukacik

University of Economics in Bratislava - Department of Operations Research and Econometrics

Adriana Lukacikova

University of Economics in Bratislava - Department of Operations Research and Econometrics

Date Written: June 30, 2017

Abstract

The European post-communist countries that have integrated into the European Union are emerging market economies. However, their short-run economic performance does not correspond to the observed business cycles of other global emerging markets. The business cycles of the studied countries are longer, and their recessions are more pronounced. Moreover, economic activity in the studied countries is relatively low and volatile, and the trade balance and government purchases have a relatively significant countercyclical character. These are the core conclusions from our business cycle study of the chosen European post-communist countries. In the study, we use both traditional and contemporary business cycle definitions. Using traditional definitions, we determine the peaks, troughs, expansions and contractions and quantify the durations and amplitudes of their expansions, recessions and business cycles. Using contemporary definitions, we measure cyclical properties by computing the first and second moments of the chosen macroeconomic cyclical components and growth rates. Differences in the business cycles and characteristics between European post-communist countries and other emerging countries are discussed with reference to the works of other authors.

Keywords: business cycles, emerging markets, European post-communist countries

JEL Classification: E32, O52

Suggested Citation

Szomolányi, Karol and Lukacik, Martin and Lukacikova, Adriana, Business Cycles in European Post-Communist Countries (June 30, 2017). Contemporary Economics, Vol. 11, No. 2, pp. 171-186, 2017. Available at SSRN: https://ssrn.com/abstract=3176982

Karol Szomolányi (Contact Author)

University of Economics in Bratislava - Department of Operations Research and Econometrics ( email )

Dolnozemská cesta 1
Bratislava, 852 35
Slovakia

Martin Lukacik

University of Economics in Bratislava - Department of Operations Research and Econometrics ( email )

Dolnozemská cesta 1
Bratislava, 852 35
Slovakia

Adriana Lukacikova

University of Economics in Bratislava - Department of Operations Research and Econometrics

Dolnozemská cesta 1
Bratislava, 852 35
Slovakia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
6
Abstract Views
65
PlumX Metrics