Trade Shocks, Growth and Resilience: Eastern Europe’s Adjustment Tale

12 Pages Posted: 14 Sep 2019

See all articles by Marco Buti

Marco Buti

European Commission, DG II

István P. Székely

European Commission, DGECFIN; Corvinus University of Budapest

Date Written: June 25, 2019

Abstract

EU11 economies are among the most open economies globally. The process of trade integration and the creation of GVCs also drove a significant inflow of FDI into these countries. While integration into the EU and FDI have enhanced their growth potential, these developments have also made them more vulnerabilities to external shocks. During the Great Recession, these countries have experienced major volatility with long lasting social and political impact. Looking forward, domestic and EU-level reforms should focus on mitigating these vulnerabilities by increasing economic and social resilience.

Keywords: EU11, open economies, trade, reform, GVCs, FDI

JEL Classification: F15, F16, F21, F36

Suggested Citation

Buti, Marco and Szekely, Istvan P., Trade Shocks, Growth and Resilience: Eastern Europe’s Adjustment Tale (June 25, 2019). Available at SSRN: https://ssrn.com/abstract=3448848 or http://dx.doi.org/10.2139/ssrn.3448848

Marco Buti

European Commission, DG II ( email )

Rue de la Loi 200
Brussels, B-1049
Belgium
+32 2 296 2246 (Phone)
+32 2 299 3505 (Fax)

Istvan P. Szekely (Contact Author)

European Commission, DGECFIN ( email )

CHAR 15/216
Brussels, Bruxelles B-1040
Belgium
+3222958674 (Phone)

Corvinus University of Budapest ( email )

Budapest
Hungary

HOME PAGE: http://www.uni-corvinus.hu/index.php?id=22061

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