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Complex evaluation of the economic crisis impact on Lithuanian industries

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  • Algirdas Krivka

Abstract

The paper analyses the impact of the economic crisis of 2008 on Lithuanian industries. The research involves 68 industries identified according to the 2nd-digit level classification of economic activities by Statistics Lithuania. Considering industry to be a complex phenomenon, the crisis effect is evaluated complexly on the basis of the system of 10 financial state and performance indicators belonging to four main groups of enterprise financial ratios: profitability, liquidity, solvency and asset turnover. SAW, TOPSIS and VIKOR multi-criteria decision making methods, widely applied in construction, economics and management, are selected as mathematical tools for quantitative assessment of the economic crisis effect on Lithuanian industries. By applying multi-criteria decision making methods relative positions (ranks) of industries are determined for every year of the period of 2006-2011. The ranks and their changes are further analysed distinguishing pre-crisis, crisis, and post-crisis periods, determining the industries most and least affected by the economic crisis; also, the industries characterised by the fastest and the slowest after-crisis recovery.

Suggested Citation

  • Algirdas Krivka, 2014. "Complex evaluation of the economic crisis impact on Lithuanian industries," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 15(2), pages 299-315, April.
    • Handle: RePEc:taf:jbemgt:v:15:y:2014:i:2:p:299-315
    DOI: 10.3846/16111699.2013.867277
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    References listed on IDEAS

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