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<p>This study examines the resilience and recovery of Central and Eastern European (CEE) economies following recent economic disruptions, focusing on the dynamic interplay between foreign direct investment (FDI) and sector level economic growth. Using panel data for 10 CEE countries (2013–2022), we apply panel Granger causality alongside simultaneous quantile regression to capture phase-dependent dynamics and heterogeneity across the performance distribution. We compare pre- and post-pandemic periods to evaluate sectoral resilience. Our findings indicate that food, transport, textile, and overall manufacturing were relatively more resilient, while agriculture, chemicals, and construction lagged during the recovery. These insights inform targeted policy by identifying where FDI can most effectively support post-pandemic adjustment in CEE.</p>

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Resilience and recovery in CEE economies: examining sectoral adaptations and the role of FDI post-pandemic

  • 期刊论文

  • 发表日期：

    2026年1月16日

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  • Viktorija Cohen,
  • Devesh Singh,
  • Jolanta Droždz,
  • Arūnas Burinskas,
  • Michael Christofi

摘要

This study examines the resilience and recovery of Central and Eastern European (CEE) economies following recent economic disruptions, focusing on the dynamic interplay between foreign direct investment (FDI) and sector level economic growth. Using panel data for 10 CEE countries (2013–2022), we apply panel Granger causality alongside simultaneous quantile regression to capture phase-dependent dynamics and heterogeneity across the performance distribution. We compare pre- and post-pandemic periods to evaluate sectoral resilience. Our findings indicate that food, transport, textile, and overall manufacturing were relatively more resilient, while agriculture, chemicals, and construction lagged during the recovery. These insights inform targeted policy by identifying where FDI can most effectively support post-pandemic adjustment in CEE.