Investigating the relationship between geopolitical risks and economic security: Empirical evidence from central and Eastern European countries

Abstract

The study employs panel bootstrap Granger causality to investigate the relationship between geopolitical risks and economic security in Central and Eastern European countries. The findings reveal that geopolitical risks have a meaningful impact on economic security in several countries, such as the Czech Republic, Hungary, Latvia, Lithuania, Poland, and Slovakia. Furthermore, the results imply that changes in geopolitical risks can significantly influence economic and social outcomes in these countries. Additionally, the study demonstrates that economic security significantly affects geopolitical risks in the Czech Republic, Hungary, Latvia, Poland, Slovenia, and Slovakia, driven by various domestic and international factors. Therefore, vulnerable countries need to assess risks and develop contingency plans, while policymakers should prioritize democracy and social cohesion, reduce inequality and instability.