CEE countries: In the European community and in the 2008-2009 crisis

Friday, 4 April 2014: 12:10 PM
Jan B. Gajda, Professor , Departmenmt of Operations Research, University of Lodz, Lodz, Poland
Objectives:

 Comparative analysis of:

  1. similarities and differences in the reaction of economies of Poland, Latvia, Lithuania, Estonia, Slovakia, Czechia and Hungary to joining the European Union
  2. the impact of the economic crisis of 2008-2009 on the economies of Poland, Latvia, Lithuania, Estonia, Slovakia, Czechia and Hungary

Data/Methods:

Statistical investigation based on correlation and regression, focused on comparative analysis of basic macroeconomic indicators like GDP, consumption, investment, employment, exports, imports and exchange rates supported by visual analysis of time series.  

Results/Expected results:

Identification of similarities and differences in the response of economies, specifically the distribution of the time lags in the reactions of economies of these countries to changes in economic system and international environment. Two topics are treated in details:

  1. reactions of economies (expressed by changes in the main economic indicators) to joining European Community; specifically the analysis focuses on gains of these economies from joining Economic Community
  2. effects of  the economic crisis of 2008-2009, ways it influenced the CEE economies and the depth of such influence.

It was widely expected that the effects of joining the European Community will have two dominant effects – in the economic sphere and in the sphere of organization and functioning of societies.

The paper focuses on the effects in the economic sphere, searching for positive effects of entering the European Community by these countries, as well as time shifts in the effects.

The second objective of the paper is associated with the reaction of these economies to the crisis of 2008-2009. The reaction to the crisis – its depth and direction is quite diversified across the countries – from slow down to deep recession.

The paper argues, that the diversification of the reactions of CEE economies suggests more subtle and diversified treatment of the these economies by international community.

Key words: GDP, European Community, CEE