The Resilience of Dutch Regions to Economic Shocks. Measuring the relevance of interactions among firms and workers
AbstractAlthough increasing attention is paid to the resilience of regions to economic shocks, theoretical and empirical insights in the determinants of regional resilience are still limited. This paper aims to make a first step in quantifying regional resilience. Using a model, we explore how three regional factors jointly contribute to the resilience of regions to economic shocks: 1) the network of buyer-supplier relationships within and between regions, 2) the level of relatedness between industries, which facilitates intersectoral labor mobility and, 3) the geographical position of a region which determines the possibilities of commuting for workers. The supply network mainly determines the propagation of the shock, while possibilities for intersectoral and interregional labor mobility affect a regional economy’s capacity to recover from the shock. To illustrate the workings of the model, it is applied to the case of the Netherlands using data on buyer-supplier relationships within and between Dutch regions, as well as on intersectoral and interregional labour mobility.
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Bibliographic InfoPaper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 1215.
Length: 43 pages
Date of creation: Aug 2012
Date of revision: Aug 2012
regional resilience; input-output network; labor mobility; related labor flows; commuting flows; the Netherlands;
Find related papers by JEL classification:
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-03 (All new papers)
- NEP-GEO-2012-09-03 (Economic Geography)
- NEP-HME-2012-09-03 (Heterodox Microeconomics)
- NEP-LAB-2012-09-03 (Labour Economics)
- NEP-URE-2012-09-03 (Urban & Real Estate Economics)
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