EU COMPETITIVENESS & ECONOMIC SHOCKS: COMPOSITE WEIGHTED INDEX OF REGIONAL RESILIENCE

Abstract

Since 2008, the world has faced the economic crisis that has had devastating effects on many regions to various degrees. How regions respond to economic shock depends on regional economic structure and performance, administrative capacity, resources, human capital, social capital, and other factors, were perceived as resilience. Resilience has recently risen to prominence in several disciplines, has also entered policy discourse, and is one of the future strategic goals for the European Union. The aim of the paper is to introduce a methodology for assessing the resilience of EU28 NUTS 2 regions based on a construction of composite weighted index derived from EU Regional Competitiveness Index database of indicators using Factor analysis and their classification by Cluster analysis. Construction of composite indicators includes several steps that have to be made and corresponding methods have to be chosen to handle different aspects of economic issues including features of EU resilience.