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Assessing economic resilience in a manufacturing-based region through industrial restructuring with environmental thresholds: An updating framework

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  • Peng, Cheng
  • Qiao, Yawen
  • Long, Hai
  • Wang, Yaxing

Abstract

Short run economic recovery from external shocks has been extensively discussed; however, the contribution of industrial reshaping strategies to economic resilience for coping with slow-burning shocks has not been adequately investigated. Examining data from 41 cities in China's Yangtze River Economic Zone during 2011–2020, this study develops a theoretical framework to investigate how industrial restructuring facilitated regional economic recovery from the 2008 global financial crisis in the long run. The updating framework shows that industrial reshaping may robustly promote regional economic resilience in the restructuring process, and that both technology- and innovation-based strategies are more significant and promoted in developed regions. Environmental governance has a positive mediating effect on the relationship when local environmental intensity is beyond the threshold value; otherwise, it has a negative effect. This study provides crucial reference values for the government to adopt an appropriate strategy to aid regional economic recovery from external shocks at different resilience stages, particularly in the restructuring process.

Suggested Citation

  • Peng, Cheng & Qiao, Yawen & Long, Hai & Wang, Yaxing, 2025. "Assessing economic resilience in a manufacturing-based region through industrial restructuring with environmental thresholds: An updating framework," China Economic Review, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:chieco:v:92:y:2025:i:c:s1043951x25000999
    DOI: 10.1016/j.chieco.2025.102441
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    Keywords

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    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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