Received:
2022-11-15 | Accepted:
2023-02-01 | Published:
2023-03-30
Title
Insight into the resilience of the Romanian economy
Abstract
We are contemporary with various financial crises of global magnitude, starting with the Great Depression of 2008-2009, so-called the "subprime crisis", the economic crisis generated by the COVID 19 pandemic, but also the one that is ongoing nowadays, caused by the Russian-Ukrainian conflict. All these extreme situations generate reactions of the most diverse and challenging to delimit and predict so that the economic entities must show permanent resilience to recover quickly and emerge victorious from the fight with the disturbing phenomena. The present study attempted an x-ray of the Romanian economy after the first year of the COVID pandemic, the most difficult year when the restrictions were among the most severe, analyzing at the same time the years before the beginning of the pandemic for an accurate picture. At the same time, we tried to answer the questions of why a company is more resilient than others using a sample of the top 100 companies in Romania, analyzing the impact on revenue growth of 13 indicators grouped in 4 classes, namely Business efficiency, Sustainable Profitability, Financial Stability, Business dynamics & stability. The obtained results may have significan economic policy implications.
Keywords
resilience, financial health, crisis, econometric model, economic growth
JEL classifications
O11
, O32
, O47
URI
http://jssidoi.org/jesi/article/1055
DOI
Pages
84-101
Funding
This paper received financial support through the project entitled DECIDE - Development through entrepreneurial education and innovative doctoral and postdoctoral research, project code POCU / 380/6/13/125031, project co-financed from the European Social Fund through the Operational Program Human Capital 2014 – 2020
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
References
Aparicio, S., Urbano, D., Audretsch, D. 2016. Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence, Technological Forecasting and Social Change, 102, 45-61. https://doi.org/10.1016/j.techfore.2015.04.006
Search via ReFindit
Arminen, H., Menegaki, A.N., 2019. Corruption, climate and the energy-environment-growth nexus. Energy Economics, 80, 621-634. https://doi.org/10.1016/j.eneco.2019.02.009
Search via ReFindit
Arrow, K., Bolin, B., Costanza, R., Dasgupta, P., Folke, C., Holling, C.S., Jansson, B.O., Levin, S., Maler, K.G., Perrings, C. 1995. Economic growth, carrying capacity, and the environment, Ecological Economics, 15(2), 91-95. 00059-3 https://doi.org/10.1016/0921-8009(95)
Search via ReFindit
Ates, A., Bititci, U. 2011. Change process: a key enabler for building resilient SMEs. International Journal of Production Research https://doi.org/10.1080/00207543.2011.563825
Search via ReFindit
Ayala, J.C., Manzano, G. 2014. The resilience of the entrepreneur. Influence on the success of the business. A longitudinal analysis, Journal of Economic Psychology, 42, 126-135. https://doi.org/10.1016/j.joep.2014.02.004
Search via ReFindit
Briguglio, L., 2009. Economic Vulnerability and Resilience: Concepts and Measurements. Oxford Development Studies, 37(3), 229-247, Estonia https://doi.org/10.1080/13600810903089893
Search via ReFindit
Briguglio, L., Cordina, G., Bugeja, S., Farrugia, N. 2006. Conceptualizing and measuring economic resilience, https://doi.org/10.22459/pirig.11.2005.03
Search via ReFindit
BSI. 2021. Organizational Resilience Index Report 2021 https://www.bsigroup.com/globalassets/localfiles/en-gb/organizational-resilience/bsi-organisational-resilience-index-report-2021.pdf
Search via ReFindit
Di Caro, P. 2017. Testing and explaining economic resilience with an application to Italian regions, Papers in Regional Science, 96(1), 93-113. https://doi.org/10.1111/pirs.12168
Search via ReFindit
FM. 2022. Global Resilience Index https://www.fmglobal.com/research-and-resources/tools-and-resources/resilienceindex
Search via ReFindit
Fratesi, U., Rodrìguez-Pose, A. 2016. The crisis and regional employment in Europe: What role for sheltered economies? Cambridge Journal of Regions, Economy and Society, 9(1), 33-57. https://doi.org/10.1093/cjres/rsv032
Search via ReFindit
Grega, M., Nečas, P. 2022. Implementation of effective solutions to the crisis tasks and its regional management, Insights into Regional Development, 4(4), 21-35. https://doi.org/10.9770/IRD.2022.4.4(2)
Search via ReFindit
Hill, E., Wial, H., & Wolman, H. 2008. Exploring regionaleconomic resilience, Working Paper, No. 2008,04, University of California, Institute of Urbanand Regional Development (IURD), Berkeley, CA https://www.econstor.eu/bitstream/10419/59420/1/592859940.pdf
Search via ReFindit
Iancu, A., Popescu, L., Varzaru, A. A., Avram, C. D. 2022. Impact of Covid-19 Crisis and Resilience of Small and Medium Enterprises. Evidence from Romania. Eastern European Economics, 60(4), 352-374. https://doi.org/10.1080/00128775.2022.2032177
Search via ReFindit
Kong, X.X., Jiang, F, & Liu, X.X. 2021. Strategic Deviance, Diversification and Enterprise Resilience in the Context of COVID-19: Heterogeneous Effect of Managerial Power. Emerging Markets Finance and Trade, 57(6), 1547-1565 https://doi.org/10.1080/1540496X.2021.1904882
Search via ReFindit
Korhonen, J., Honkasalo, A., Seppälä, J., 2018. Circular Economy: The Concept and its Limitations. Ecological Economics, https://doi.org/10.1016/j.ecolecon.2017.06.041
Search via ReFindit
Luthar, S., Dante Cicchetti, D., Becker, B.. 2000. The Construct of Resilience: A Critical Evaluation and Guidelines for Future Work, Child Development, 71(3), https://doi.org/10.1111/1467-8624.00164
Search via ReFindit
Marcazzan, E., Campagnolo, D., & Gianecchini, M. 2022. Reaction or anticipation? Resilience in small- and medium-sized enterprises. Journal of Small Business and Enterprise Development, 29(5), 764-788. http://doi.org/10.1108/JSBED-07-2021-0271
Search via ReFindit
Markovic, M.R., Farooq, M.S., Markovic, D. 2017. Strengthening the Resilience of Small and Medium-Sized Enterprises, Management, Enterprise and Benchmarking in the 21st Century Budapest https://core.ac.uk/download/pdf/85227056.pdf
Search via ReFindit
Martin, R., & Sunley, P. 2015. On the notion of regional economic resilience: conceptualization and explanation. Journal of Economic Geography, 15(1), 1-42. https://doi.org/10.1093/jeg/lbu015
Search via ReFindit
Martin, R., Sunley, P., Gardiner, B, Tyler, P. 2016. How Regions React to Recessions: Resilience and the Role of Economic Structure. Regional Studies, 50(4), 561-585. https://doi.org/10.1080/00343404.2015.1136410
Search via ReFindit
Modica, D., Reggiani, A. 2014. Spatial Economic Resilience: Overview and Perspectives. Networks and Spatial Economics, 1-23. https://doi.org/10.1007/s11067-014-9261-7
Search via ReFindit
Peng, X.Y., Luo, L., Liao, H.C., Zavadskas, E.K., Al-Barakati, A. (2021). A novel Decision-making Method for Resilient Supplier Selection during COVID-19 Pandemic Outbreak based on Hesitant Fuzzy Linguistic Preference Relations. Transformations in Business & Economics, Vol. 20, No 3 (54), pp.238-258.
Search via ReFindit
Pike, A., Dawley, S., Tomaney, J. 2010. Resilience, adaptation and adaptability. Cambridge Journal of Regions Economy and Society, 3(1), https://doi.org/10.1093/cjres/rsq001
Search via ReFindit
Sabatino, M. 2019. Economic resilience and social capital of the Italian regions. International Review of Economics & Finance, 61, 355-367. https://doi.org/10.1016/j.iref.2019.02.011
Search via ReFindit
Sbia, R., Shahbaz, M., Hamdi, H. 2014. A contribution of foreign direct investment, clean energy, trade openness, carbon emissions and economic growth to energy demand in UAE. Economic Modelling, 36,191-197. https://doi.org/10.1016/j.econmod.2013.09.047
Search via ReFindit
Shipanga, U., Le Roux, S., Dubihlela, J. 2022. Operational risk factors and the sustainability of small and medium manufacturing enterprises in South Africa. Insights into Regional Development, 4(4), 126-139. https://doi.org/10.9770/IRD.2022.4.4(7)
Search via ReFindit
Sy, H. 2020. The Determinants of Economic Growth in Ghana: New Empirical Evidence. Global Business Review, https://doi.org/10.1177/0972150918779
Search via ReFindit
Tognazzo, A., Gubitta, P., Favaron, S.D. 2016. Does slack always affect resilience? A study of quasi-medium-sized Italian firms. Entrepreneurship & Regional Development https://doi.org/10.1080/08985626.2016.1250820
Search via ReFindit
Wang, NN, Cui, D.F, & Jin, C.G. 2023. The Value of Internal Control during a Crisis: Evidence from Enterprise Resilience. Sustainability, 15(1), 513 http://doi.org/10.3390/su15010513
Search via ReFindit
Windle, G., Bennert, K. M., & Noyes, J. 2011. A methodological review of resilience measurement scales. Health and Quality of Life Outcomes, 9(8) https://doi.org/10.1186/1477-7525-9-8
Search via ReFindit