PARTIAL LEAST SQUARES REGRESSION (PLSR) APPLIED FOR ASSESSING THE ECONOMIC RESILIENCE IN EU COUNTRIES

Abstract

: The assessment of the economic resilience requires the analysis of the resilience as a process by using a multidimensional approach. In the paper, by using two quantitative measures of economic resilience, the GDP growth rate and the employment rate, we identify the most important determinants which have an influence on economic resilience for the EU countries, taking into account the economic, social and institutional dimensions. By applying the partial least squares regression (PLSR) for data registered for the period 2008-2021, we estimate a model for the European Union countries, distinct for the three stages of the resilience process: resistance, recovery and transformation. Our results show that the crisis of 2008 was felt more on the economic and social dimensions, resilience in the EU countries getting higher scores with the solidity of their institutional system.