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The Resilience of Dutch Regions to Economic Shocks. Measuring the relevance of interactions among firms and workers


  • Dario Diodato


  • Anet Weterings



Although 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.

Suggested Citation

  • Dario Diodato & Anet Weterings, 2012. "The Resilience of Dutch Regions to Economic Shocks. Measuring the relevance of interactions among firms and workers," Papers in Evolutionary Economic Geography (PEEG) 1215, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2012.
  • Handle: RePEc:egu:wpaper:1215

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    References listed on IDEAS

    1. Jan Rouwendal, 2004. "Search Theory and Commuting Behavior," Growth and Change, Wiley Blackwell, vol. 35(3), pages 391-418.
    2. Ron Martin, 2012. "Regional economic resilience, hysteresis and recessionary shocks," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 1-32, January.
    3. Jacob Rubæk Holm & Christian Richter Østergaard, 2010. "Sources of Regional Resilience in the Danish ICT Sector," DRUID Working Papers 10-28, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    4. Edward L. Glaeser & Giacomo A. M. Ponzetto & Kristina Tobio, 2014. "Cities, Skills and Regional Change," Regional Studies, Taylor & Francis Journals, vol. 48(1), pages 7-43, January.
    5. Frank Neffke & Martin Svensson Henning, 2009. "Skill-relatedness and firm diversification," Papers on Economics and Evolution 2009-06, Philipps University Marburg, Department of Geography, revised Oct 2010.
    6. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521517133, May.
    7. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521739023, May.
    8. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
    9. Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
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    11. Van Ommeren, Jos & Rietveld, Piet, 2005. "The commuting time paradox," Journal of Urban Economics, Elsevier, vol. 58(3), pages 437-454, November.
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    More about this item


    regional resilience; input-output network; labor mobility; related labor flows; commuting flows; the Netherlands;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O18 - Economic Development, Innovation, 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

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