IDEAS home Printed from https://ideas.repec.org/a/eee/jpolmo/v42y2020i5p1064-1084.html
   My bibliography  Save this article

The link between quality of government and regional resilience in Europe

Author

Listed:
  • Rios, Vicente
  • Gianmoena, Lisa

Abstract

This study analyzes the robustness of the link between quality of government and resilience in a sample of 264 NUTS-2 regions of 28 European countries during the Great Recession. Bayesian Model Averaging techniques are used to analyze the relevance of the quality of government together with a large set of macroeconomic, institutional, innovation, socio-demographic and labor market and sectoral specialization factors that may affect observed resilience patterns in Europe. The robustness of individual covariates is measured through posterior inclusion probabilities. The empirical analysis provides conclusive evidence on the role played by the regional quality of government as it appears to be one of the most robust drivers of resilience. In a second step, posterior jointness is investigated finding that factors related to the knowledge and innovation environment reinforce the relevance of quality of government while others such as trade openness act as substitutes.

Suggested Citation

  • Rios, Vicente & Gianmoena, Lisa, 2020. "The link between quality of government and regional resilience in Europe," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 1064-1084.
    • Handle: RePEc:eee:jpolmo:v:42:y:2020:i:5:p:1064-1084
    DOI: 10.1016/j.jpolmod.2020.02.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0161893820300235
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jpolmod.2020.02.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Riccardo Crescenzi & Davide Luca & Simona Milio, 2016. "Editor's choice The geography of the economic crisis in Europe: national macroeconomic conditions, regional structural factors and short-term economic performance," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 13-32.
    2. Andrés Rodríguez-Pose & Gilles Cols, 2017. "The determinants of foreign direct investment in sub-Saharan Africa: What role for governance?," Regional Science Policy & Practice, Wiley Blackwell, vol. 9(2), pages 63-81, June.
    3. Jorge Martinez-Vazquez & Santiago Lago-Peñas & Agnese Sacchi, 2017. "The Impact Of Fiscal Decentralization: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 31(4), pages 1095-1129, September.
    4. Riccardo Crescenzi & Marco Di Cataldo & Andrés Rodríguez-Pose, 2016. "Government Quality And The Economic Returns Of Transport Infrastructure Investment In European Regions," Journal of Regional Science, Wiley Blackwell, vol. 56(4), pages 555-582, September.
    5. Enrico Marelli & Roberto Patuelli & Marcello Signorelli, 2012. "Regional unemployment in the EU before and after the global crisis," Post-Communist Economies, Taylor & Francis Journals, vol. 24(2), pages 155-175, January.
    6. Goerner, Sally J. & Lietaer, Bernard & Ulanowicz, Robert E., 2009. "Quantifying economic sustainability: Implications for free-enterprise theory, policy and practice," Ecological Economics, Elsevier, vol. 69(1), pages 76-81, November.
    7. Álvarez, Inmaculada C. & Barbero, Javier & Rodríguez-Pose, Andrés & Zofío, José L., 2018. "Does Institutional Quality Matter for Trade? Institutional Conditions in a Sectoral Trade Framework," World Development, Elsevier, vol. 103(C), pages 72-87.
    8. Martin, Philippe & Ann Rogers, Carol, 2000. "Long-term growth and short-term economic instability," European Economic Review, Elsevier, vol. 44(2), pages 359-381, February.
    9. Roberto Ezcurra & Vicente Rios, 2015. "Volatility and Regional Growth in Europe: Does Space Matter?," Spatial Economic Analysis, Taylor & Francis Journals, vol. 10(3), pages 344-368, September.
    10. Campos, Nauro F. & Estrin, Saul & Proto, Eugenio, 2010. "Corruption as a Barrier to Entry: Theory and Evidence," IZA Discussion Papers 5243, Institute of Labor Economics (IZA).
    11. Gernot Doppelhofer & Melvyn Weeks, 2009. "Jointness of growth determinants," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(2), pages 209-244, March.
    12. An, Weihua & Kweon, Yesola, 2017. "Do higher government wages induce less corruption? Cross-country panel evidence," Journal of Policy Modeling, Elsevier, vol. 39(5), pages 809-826.
    13. Sondermann, David, 2018. "Towards more resilient economies: The role of well-functioning economic structures," Journal of Policy Modeling, Elsevier, vol. 40(1), pages 97-117.
    14. Raffaele Lagravinese, 2015. "Economic crisis and rising gaps North–South: evidence from the Italian regions," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 331-342.
    15. Marco Modica & Aura Reggiani, 2015. "Spatial Economic Resilience: Overview and Perspectives," Networks and Spatial Economics, Springer, vol. 15(2), pages 211-233, June.
    16. Goel, Rajeev K. & Nelson, Michael A., 2010. "Causes of corruption: History, geography and government," Journal of Policy Modeling, Elsevier, vol. 32(4), pages 433-447, July.
    17. Juan R. Cuadrado-Roura & Andrés Maroto, 2016. "Unbalanced regional resilience to the economic crisis in Spain: a tale of specialisation and productivity," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 153-178.
    18. Ron Martin & Peter Sunley & Ben Gardiner & Peter Tyler, 2016. "How Regions React to Recessions: Resilience and the Role of Economic Structure," Regional Studies, Taylor & Francis Journals, vol. 50(4), pages 561-585, April.
    19. Roberta Capello & Andrea Caragliu & Ugo Fratesi, 2015. "Spatial heterogeneity in the costs of the economic crisis in Europe: are cities sources of regional resilience?," Journal of Economic Geography, Oxford University Press, vol. 15(5), pages 951-972.
    20. Crescenzi, Riccardo & Luca, Davide & Milio, Simona, 2016. "The geography of the economic crisis in Europe: national macroeconomic conditions, regional structural factors and short-term economic performance," LSE Research Online Documents on Economics 64061, London School of Economics and Political Science, LSE Library.
    21. Aida Caldera Sánchez & Filippo Gori, 2016. "Can Reforms Promoting Growth Increase Financial Fragility?: An Empirical Assessment," OECD Economics Department Working Papers 1340, OECD Publishing.
    22. Gillian Bristow & Adrian Healy, 2018. "Innovation and regional economic resilience: an exploratory analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 265-284, March.
    23. Ugo Fratesi & Andrés Rodríguez-Pose, 2016. "The crisis and regional employment in Europe: what role for sheltered economies?," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 33-57.
    24. Steven Brakman & Harry Garretsen & Charles van Marrewijk, 2015. "Regional resilience across Europe: on urbanisation and the initial impact of the Great Recession," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 225-240.
    25. Rudiger Ahrend & Antoine Goujard, 2012. "International Capital Mobility and Financial Fragility - Part 3. How Do Structural Policies Affect Financial Crisis Risk?: Evidence from Past Crises Across OECD and Emerging Economies," OECD Economics Department Working Papers 966, OECD Publishing.
    26. Yu, Shu & Beugelsdijk, Sjoerd & de Haan, Jakob, 2015. "Trade, trust and the rule of law," European Journal of Political Economy, Elsevier, vol. 37(C), pages 102-115.
    27. Andrés Rodríguez-Pose & Marco Di Cataldo, 2015. "Quality of government and innovative performance in the regions of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 673-706.
    28. Elias Giannakis & Adriana Bruggeman, 2017. "Determinants of regional resilience to economic crisis: a European perspective," European Planning Studies, Taylor & Francis Journals, vol. 25(8), pages 1394-1415, August.
    29. Vicente Rios, 2017. "What drives unemployment disparities in European regions? A dynamic spatial panel approach," Regional Studies, Taylor & Francis Journals, vol. 51(11), pages 1599-1611, November.
    30. Alguacil, M. & Cuadros, A. & Orts, V., 2011. "Inward FDI and growth: The role of macroeconomic and institutional environment," Journal of Policy Modeling, Elsevier, vol. 33(3), pages 481-496, May.
    31. Mark Thissen & Olga Ivanova & Giovanni Mandras & Trond Husby, 2019. "European NUTS 2 regions: construction of interregional trade-linked Supply and Use tables with consistent transport flows," JRC Working Papers on Territorial Modelling and Analysis 2019-01, Joint Research Centre.
    32. Rudiger Ahrend & Antoine Goujard & Cyrille Schwellnus, 2012. "International Capital Mobility: Which Structural Policies Reduce Financial Fragility?," OECD Economic Policy Papers 2, OECD Publishing.
    33. Ron Martin & Peter Sunley, 2015. "On the notion of regional economic resilience: conceptualization and explanation," Journal of Economic Geography, Oxford University Press, vol. 15(1), pages 1-42.
    34. Roberta Capello & Camilla Lenzi, 2014. "Spatial Heterogeneity In Knowledge, Innovation, And Economic Growth Nexus: Conceptual Reflections And Empirical Evidence," Journal of Regional Science, Wiley Blackwell, vol. 54(2), pages 186-214, March.
    35. Roberto Ezcurra & Vicente Rios, 2019. "Quality of government and regional resilience in the European Union. Evidence from the Great Recession," Papers in Regional Science, Wiley Blackwell, vol. 98(3), pages 1267-1290, June.
    36. Enrique Moral-Benito, 2015. "Model Averaging In Economics: An Overview," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 46-75, February.
    37. Nicholas Charron & Lewis Dijkstra & Victor Lapuente, 2014. "Regional Governance Matters: Quality of Government within European Union Member States," Regional Studies, Taylor & Francis Journals, vol. 48(1), pages 68-90, January.
    38. Roberto Cellini & Gianpiero Torrisi, 2014. "Regional Resilience in Italy: A Very Long-Run Analysis," Regional Studies, Taylor & Francis Journals, vol. 48(11), pages 1779-1796, November.
    39. Don J. Webber & Adrian Healy & Gillian Bristow, 2018. "Regional Growth Paths and Resilience: A European Analysis," Economic Geography, Taylor & Francis Journals, vol. 94(4), pages 355-375, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammed M. Al-Humaiqani & Sami G. Al-Ghamdi, 2023. "Assessing the Built Environment’s Reflectivity, Flexibility, Resourcefulness, and Rapidity Resilience Qualities against Climate Change Impacts from the Perspective of Different Stakeholders," Sustainability, MDPI, vol. 15(6), pages 1-30, March.
    2. Peiró-Palomino, Jesús & Perugini, Francesco, 2022. "Regional innovation disparities in Italy: The role of governance," Economic Systems, Elsevier, vol. 46(4).
    3. Vicente Rios & Lisa Gianmoena, 2021. "On the link between temperature and regional COVID‐19 severity: Evidence from Italy," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(S1), pages 109-137, November.
    4. Vinko Muštra & Blanka Škrabić Perić & Smiljana Pivčević, 2023. "Cultural heritage sites, tourism and regional economic resilience," Papers in Regional Science, Wiley Blackwell, vol. 102(3), pages 465-482, June.
    5. Liang, Lin & Li, Yan, 2023. "How does government support promote digital economy development in China? The mediating role of regional innovation ecosystem resilience," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    6. KYDROS Dimitrios & FILENTA Pagona, 2022. "Literature Review of Economic and Regional Development through Quantitative Methods and Social Network Analysis," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    7. de Lucio, Juan & Mora-Sanguinetti, Juan S., 2022. "Drafting “better regulation”: The economic cost of regulatory complexity," Journal of Policy Modeling, Elsevier, vol. 44(1), pages 163-183.
    8. Alaa M. S. Azazz & Ibrahim A. Elshaer, 2022. "Amid COVID-19 Pandemic, Entrepreneurial Resilience and Creative Performance with the Mediating Role of Institutional Orientation: A Quantitative Investigation Using Structural Equation Modeling," Mathematics, MDPI, vol. 10(12), pages 1-17, June.
    9. Dolores Añón Higón & Juan A. Máñez & María E. Rochina-Barrachina & Amparo Sanchis & Juan A. Sanchis, 2022. "Firms’ distance to the European productivity frontier," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(2), pages 197-228, June.
    10. Arbolino, Roberta & Caro, Paolo Di, 2021. "Can the EU funds promote regional resilience at time of Covid-19? Insights from the Great Recession11We thank the Editors and the four anonymous referees for helpful comments. We also thank Emanuele C," Journal of Policy Modeling, Elsevier, vol. 43(1), pages 109-126.
    11. Eleonora Cutrini, 2023. "Postcrisis recovery in the regions of Europe: Does institutional quality matter?," Journal of Regional Science, Wiley Blackwell, vol. 63(1), pages 5-29, January.
    12. Elena Lyaskovskaya & Gulnaz Khalilova & Kristina Grigorieva, 2023. "Dynamic Analysis of the EU Countries Sustainability: Methods, Models, and Case Study," Mathematics, MDPI, vol. 11(23), pages 1-40, November.
    13. Feng, Gen-Fu & Zheng, Mingbo, 2022. "Economic policy uncertainty and renewable energy innovation: International evidence," Innovation and Green Development, Elsevier, vol. 1(2).
    14. Alessia Arcidiacono & Gianpiero Torrisi, 2022. "Decentralisation and Resilience: A Multidimensional Approach," Sustainability, MDPI, vol. 14(16), pages 1-25, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lisa Gianmoena & Vicente Rios, 2018. "The Determinants of Resilience in European Regions During the Great Recession: a Bayesian Model Averaging Approach," Discussion Papers 2018/235, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    2. Sébastien BOURDIN, 2018. "Géographie de la résilience des régions européennes face à la crise (2008-2013)," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 48, pages 53-70.
    3. Meiyue Li & Xiaowen Wang, 2022. "How Regions React to Economic Crisis: Regional Economic Resilience in a Chinese Perspective," SAGE Open, , vol. 12(4), pages 21582440221, December.
    4. Giulio Cainelli & Roberto Ganau & Marco Modica, 2019. "Industrial relatedness and regional resilience in the European Union," Papers in Regional Science, Wiley Blackwell, vol. 98(2), pages 755-778, April.
    5. Pedro Sánchez-Zamora & Rosa Gallardo-Cobos, 2019. "Diversity, Disparity and Territorial Resilience in the Context of the Economic Crisis: An Analysis of Rural Areas in Southern Spain," Sustainability, MDPI, vol. 11(6), pages 1-21, March.
    6. Vinko Muštra & Blanka Šimundić & Zvonimir Kuliš, 2020. "Does innovation matter for regional labour resilience? The case of EU regions," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(5), pages 955-970, October.
    7. Elias Giannakis & Christos T. Papadas, 2021. "Spatial Connectivity and Regional Economic Resilience in Turbulent Times," Sustainability, MDPI, vol. 13(20), pages 1-12, October.
    8. Linus Holtermann & Christian Hundt, 2018. "Hierarchically structured determinants and phase related patterns of economic resilience. An empirical case study for European regions," Working Papers on Innovation and Space 2018-02, Philipps University Marburg, Department of Geography.
    9. Hasan Engin Duran & Ugo Fratesi, 2023. "Economic resilience and regionally differentiated cycles: Evidence from a turning point approach in Italy," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 219-252, April.
    10. Adelheid Holl, 2018. "Local employment growth patterns and the Great Recession: The case of Spain," Journal of Regional Science, Wiley Blackwell, vol. 58(4), pages 837-863, September.
    11. Giuseppe Terzo, 2021. "Social capital, social economy and economic resilience of Italian provinces," Papers in Regional Science, Wiley Blackwell, vol. 100(5), pages 1113-1135, October.
    12. Giulia Urso & Marco Modica & Alessandra Faggian, 2019. "Resilience and Sectoral Composition Change of Italian Inner Areas in Response to the Great Recession," Sustainability, MDPI, vol. 11(9), pages 1-15, May.
    13. Anping Chen & Nicolaas Groenewold, 2019. "Regional resilience in China: The response of the provinces to the growth slowdown," Economics Discussion / Working Papers 19-06, The University of Western Australia, Department of Economics.
    14. Florin Oprea & Mihaela Onofrei & Dan Lupu & Georgeta Vintila & Gigel Paraschiv, 2020. "The Determinants of Economic Resilience. The Case of Eastern European Regions," Sustainability, MDPI, vol. 12(10), pages 1-11, May.
    15. O. V. Kuznetsova, 2022. "The Transformation of the Spatial Structure of an Economy in the Crisis and Post-Crisis Periods," Regional Research of Russia, Springer, vol. 12(4), pages 451-458, December.
    16. Paolo Rizzi & Paola Graziano & Antonio Dallara, 2018. "A capacity approach to territorial resilience: the case of European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 285-328, March.
    17. Pietro Pizzuto, 2020. "The role of regional competitiveness in shaping the heterogeneous impact of the Great Recession," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(2), pages 267-290, April.
    18. Pontarollo, Nicola & Serpieri, Carolina, 2020. "A composite policy tool to measure territorial resilience capacity," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    19. Luciana Lazzeretti & Stefania Oliva & Niccolò Innocenti, 2019. "Exploring the role of industrial structure for regional economic resilience," Papers in Evolutionary Economic Geography (PEEG) 1917, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2019.
    20. Eleonora Cutrini, 2023. "Postcrisis recovery in the regions of Europe: Does institutional quality matter?," Journal of Regional Science, Wiley Blackwell, vol. 63(1), pages 5-29, January.

    More about this item

    Keywords

    Resilience; Quality of government; Determinants; Bayesian Model Averaging; Posterior jointness;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:42:y:2020:i:5:p:1064-1084. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505735 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.