Economic resilience and the state: A global panel analysis

Main Article Content

Cristian Paun Radu Musetescu Radu Isaic Gheorghe Cosmin Manea Hezi Shayb


Modern economies are disturbed by recessions that became more and more globalized, much contagious between countries and regions and with higher negative impact during recessions. In this dynamic context, the recovery after recession is essential to prepare the economy for the next business cycle. Understanding of these business cycles (their causes and impact) is fundamental for public policies that should avoid to be pro-cyclical and to add more vulnerabilities to the existing ones. The economic resilience is now a key concept and refers to the capacity of the economy to recover after any recession. The aim of this paper was to explore the relationship between the dimension of the state and the resilience of the economic system by using a global panel data. The study includes 87 countries (870 observations) and data covering 2009 – 2019 provided by World Bank. We used 2 depending variables: GDP gap and GDP per capita gap and 12 explanatory variables grouped in 4 categories: dimension of the state, the quality of public governance, economic development and regional/global economic dependence). The results are robust and significant, confirming that the dimension of the public intervention and the quality of the public governance & administration have a clear impact on the economic resilience and recovery between business cycles.

Article Details

How to Cite
PAUN, Cristian et al. Economic resilience and the state: A global panel analysis. Economics, Management and Sustainability, [S.l.], v. 6, n. 2, p. 34-45, nov. 2021. ISSN 2520-6303. Available at: <>. Date accessed: 21 jan. 2022. doi:


Acemoglu, D., Johnson, S., Robinson. I., & Thaicharoen, Y. (2004). Institutional causes. Macroeconomic simptoms: Volatility, crises and growth. Journal of Monetary Economics, 50(1), 49-123.
Aligica, P. D., & Tarko, V. (2014). Institutional resilience and economic systems: lessons from Elinor Ostrom’s work. Comparative Economic Studies, 56(1), 52-76.
Bruneckiene, J., Pekarskiene, I., Palekiene, O., & Simanaviciene, Z. (2019). An assessment of socio-economic systems’ resilience to economic shocks: The case of Lithuanian regions. Sustainability, 11(3), 566-589.
De Soto, J. H. (2006). Money, bank credit, and economic cycles. Ludwig von Mises Institute.
Di Pietro, F., Lecca, P., & Salotti, S. (2021). Regional economic resilience in the European Union: a numerical general equilibrium analysis. Spatial Economic Analysis, 16(3), 287-312.
Duval, R., & Vogel, L. (2008). Economic resilience to shocks: The role of structural policies. OECD Journal: Economic Studies, 2008(1), 1-38.
Pendall, R., Foster, K. A., & Cowell, M. (2010). Resilience and regions: building understanding of the metaphor. Cambridge Journal of Regions, Economy and Society, 3(1), 71-84.
Pretorius, O., Drewes, E., van Aswegen, M., & Malan, G. (2021). A Policy Approach towards Achieving Regional Economic Resilience in Developing Countries: Evidence from the SADC. Sustainability, 13(5), 2674-2695.
Régibeau, P., & Rockett, K. (2013). Economic analysis of resilience: A framework for local policy response based on new case studies. Journal of Innovation Economics Management, (1), 107-147.
Rose, A. (2004). Defining and measuring economic resilience to disasters. Disaster Prevention and Management: An International Journal, 13(4), 307-314.
Rothbard, M. N. (2000). America’s Great Depression (Auburn. Ala: Ludwig von Mises Institute.
von Mises, L. (1951). Socialism: An Economic and Sociological Analysis (p. 600). Macmillan Company.
von Mises, L. (1953). The theory of money and credit (p. 462). New Haven: Yale University Press.