Mangirdas Morkūnas,

Lithuanian Institute of Agrarian Economics,

Vilnius, Lithuania,

E-mail: mangirdas.morkunas@laei.lt

How Resistant is the Agricultural Sector? Economic Resilience Exploited

Artiom Volkov,

Lithuanian Institute of Agrarian Economics,

Vilnius, Lithuania,

E-mail: artiom.volkov@laei.lt

Pasquale Pazienza,

University of Foggia,

Foggia, Italy,

E-mail:  pasquale.pazienza@unifig.it

Abstract. The concept of resilience has wide acceptance in different scientific doctrines and fields, from ecology to disaster management. Nowadays this phenomenon is being more and more intensively exploited in economic sciences in an attempt to measure the ability of economic systems to quickly regenerate from different external shocks or even to avoid them as such. This research paper examines economic resilience of the agricultural sector (including industries) with the example of Lithuanian empirical data. In order to measure the economic resilience of the agricultural sector, the appropriate index was created including a new derivative indicator – volatility of revenues from the desired growth path. Expert interviews, statistical analysis and econometrical modelling were employed in our research. The results show the increasing value of economic resilience of the Lithuanian agricultural sector up to the year 2015, which can be attributed to the accession into the EU, after this year inclination towards more profitable, but considerably more risky export markets lowers the calculated parameter of economic resilience of the Lithuanian agricultural sector. Such a tendency questions the sustainability of economic resilience of the Lithuanian agricultural sector.

Received: March, 2018

1st Revision: June, 2018

Accepted: September, 2018

DOI: 10.14254/2071-789X.2018/11-3/19

JEL Classification: Q11, Q18, O13

Keywords: economic resilience, agricultural sector, SAW, Lithuania