IDEAS home Printed from https://ideas.repec.org/a/spr/cejnor/v33y2025i3d10.1007_s10100-024-00948-7.html
   My bibliography  Save this article

Macroeconomic performance of European Union's small open economies during the COVID-19 pandemic

Author

Listed:
  • Karol Szomolanyi

    (University of Economics in Bratislava)

  • Martin Lukacik

    (University of Economics in Bratislava)

  • Adriana Lukacikova

    (University of Economics in Bratislava)

Abstract

This paper explains the business cycle characteristics in the small open European Union Countries during the COVID-19 pandemic. The panel cyclical components of GDP and its components, labour, and average product of labour were computed. The study adopts a real business cycle model with importable, exportable, and tradeable products to explain the cyclical characteristics of small and big EU countries. According to the results, the business cycle characteristics of the big EU countries during the pandemic correspond to the findings from the papers worldwide. The primary shock was a decrease in the labour supply. An increase in the adjustment capital costs explains the unusual consumption volatility. Results related to the small EU countries differ from those of the big countries and those obtained in other studies. The primary source of macroeconomic changes during the pandemic was changes in the terms of trade. Changes in the labour supply were also significant. The higher capital adjustment costs explain the consumption volatility, and the higher debt service costs explain the investment volatility.

Suggested Citation

  • Karol Szomolanyi & Martin Lukacik & Adriana Lukacikova, 2025. "Macroeconomic performance of European Union's small open economies during the COVID-19 pandemic," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 33(3), pages 757-790, September.
    • Handle: RePEc:spr:cejnor:v:33:y:2025:i:3:d:10.1007_s10100-024-00948-7
    DOI: 10.1007/s10100-024-00948-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10100-024-00948-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10100-024-00948-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:cejnor:v:33:y:2025:i:3:d:10.1007_s10100-024-00948-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.