Impact of the COVID-19 pandemic on the economic development of EU countries

  • Received June 20, 2022;
    Accepted August 8, 2022;
    Published August 23, 2022
  • Author(s)
    Vladislavas Petraškevičius ,
    Romualdas Ginevičius
    ORCID ,
    Klaudia Bracio
    ORCID ,
    Gabriela Menet
    ORCID , Regimantas Visokavičius
  • DOI
    http://dx.doi.org/10.21511/ppm.20(3).2022.17
  • Article Info
    Volume 20 2022, Issue #3, pp. 204-214
  • TO CITE АНОТАЦІЯ
  • Cited by
    4 articles
  • 705 Views
  • 243 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

One of the essential consequences of the COVID-19 pandemic is a slowdown in economic development, which is reflected in an integrated way by the Gross Domestic Product per inhabitant of the country. However, its dimensions are not the same for individual countries of the European Union, so it is crucial to determine what circumstances led to this phenomenon. Therefore, the purpose of this study is to determine individual EU countries’ losses caused by the COVID-19 pandemic and the circumstances they depended on.
Correlation-regression analysis was used, which made it possible to calculate what effect the countries’ economic development level and the intensity of its positive changes on the eve of the COVID-19 pandemic had on the losses incurred. In 2018, it was found that this relationship is very strong (the value of the correlation coefficient r equals 0.8 and 0.7, respectively). The study’s results highlighted the regularity – economic development slowed down the least in those countries where it was in the best condition, and the positive development changes were the most intense. It was found that in the ten most developed EU countries, economic growth slowed down because of the COVID-19 pandemic by approximately 2.3%, and in the rest of the countries – 5.1%. According to the slow-down of economic development, insensitiveness was approximately 3.45 and 5.46%.

Acknowledgment
This research was partly funded by the Cracow University of Economics under Grant No. 4/ZZA/2021/POT.

view full abstract hide full abstract
    • Figure 1. Impact of the COVID-19 pandemic on EU economic development depending on its level
    • Figure 2. Impact of the COVID-19 pandemic on EU economic development depending on its intensity
    • Table 1. Impact of the COVID-19 pandemic on the EU economic development, %
    • Table 2. Results of a correlation-regressive analysis of the impact of the COVID-19 pandemic on economic development in EU countries
    • Conceptualization
      Vladislavas Petraškevičius
    • Investigation
      Vladislavas Petraškevičius
    • Methodology
      Vladislavas Petraškevičius, Romualdas Ginevičius
    • Supervision
      Vladislavas Petraškevičius
    • Writing – review & editing
      Vladislavas Petraškevičius, Klaudia Bracio, Gabriela Menet, Regimantas Visokavičius
    • Data curation
      Romualdas Ginevičius, Klaudia Bracio
    • Writing – original draft
      Romualdas Ginevičius
    • Resources
      Klaudia Bracio, Regimantas Visokavičius
    • Formal Analysis
      Gabriela Menet
    • Validation
      Gabriela Menet
    • Visualization
      Regimantas Visokavičius
Related Articles

  • Impact on poverty and income inequality in Malaysia’s economic growth

    Rabiul IslamORCID Researcher ID, Ahmad Bashawir Abdul Ghani , Irwanshah Zainal Abidin , Jeya Malar Rayaiappan doi: http://dx.doi.org/10.21511/ppm.15(1).2017.05
    Problems and Perspectives in Management Volume 15, 2017         Issue #1         pp. 55-62 Views: 12069 Downloads: 5762 TO CITE АНОТАЦІЯ

    Poverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect economic growth. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970’s. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.

  • Impact of inflation on economic growth: evidence from Nigeria

    Anthony Olugbenga AdaramolaORCID , Oluwabunmi Dada doi: http://dx.doi.org/10.21511/imfi.17(2).2020.01
    Investment Management and Financial Innovations Volume 17, 2020         Issue #2         pp. 1-13 Views: 9385 Downloads: 5706 TO CITE АНОТАЦІЯ

    In an attempt to examine the influence of inflation on the growth prospects of the Nigerian economy, the study employs the autoregressive distributed lag on the selected variables, i.e. real gross domestic product (GDP), inflation rate, interest rate, exchange rate, degree of economy`s openness, money supply, and government consumption expenditures for the period 1980–2018. The study findings indicate that inflation and real exchange rate exert a significant negative impact on economic growth, while interest rate and money supply indicate a positive and significant impact on economic growth. Other variables in the model depict no influence on the economic growth of Nigeria. The causality result shows the unidirectional relationships between interest rate, exchange rate, government consumption expenditures and gross domestic product. However, inflation and the degree of openness show no causal relationship with gross domestic product. As a result, the study recommends that a more pragmatic effort is needed by the monetary authorities to target the inflation vigorously to prevent its adverse effect by ensuring a tolerable rate that would stimulate the economic growth of Nigeria.

  • Formalization of the impact of imbalances in the movement of financial resources on economic growth of countries in Central and Eastern Europe

    Serhiy KozmenkoORCID , Maxim KorneyevORCID Researcher ID doi: http://dx.doi.org/10.21511/afc.01(1).2017.06
    Accounting and Financial Control Volume 1, 2017         Issue #1         pp. 48-58 Views: 7989 Downloads: 1382 TO CITE

    The article deals with the impact of financialization on economic growth in countries of Central and Eastern Europe. It determinesthe impact of imbalances in the movement of financial resources caused by financialization on economic growth of these countries. It proves that the implementation of measures aimed at increasing the openness of the economy and maintaining solvent demand have a positive impact on economic growth of the surveyed countries in the long run. It also proves the importance of developing a set of measures of strategic nature regulating imbalances in the movement of financial resources caused by financialization.

Download Preview
Close
Problems and Perspectives in Management
Problems and Perspectives in Management