IDEAS home Printed from https://ideas.repec.org/p/pum/wpaper/2018-02.html
   My bibliography  Save this paper

Hierarchically structured determinants and phase related patterns of economic resilience. An empirical case study for European regions

Author

Listed:
  • Linus Holtermann

    (Geography Department, Urban and Regional Economics, Ruhr University Bochum)

  • Christian Hundt

    (Johann Heinrich von Thuenen Institute, Thuenen Institute of Rural Studies)

Abstract

Our paper seeks to provide empirical evidence for a spatial temporal system of (short term) regional resilience determinants. Based on groundwork from Martin (2012) and Martin and Sunley (2015), we employ a nested hierarchy of regional and national determinants to constitute the spatial dimension, while we model the temporal dimension through a resistance and a recovery phase. Utilising hierarchical panel data models for a sample of 22 European countries, we can confirm the presence of a spatial temporal system as we find significant determinants at both spatial levels that are connected via crosslevel interactions and reveal varying, if not opposing directions of influences across the sensitivity and recovery phase.

Suggested Citation

  • 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.
    • Handle: RePEc:pum:wpaper:2018-02
    as

    Download full text from publisher

    File URL: https://repec.geographie.uni-marburg.de/pum/wpaper/wp0218.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bernard Fingleton & Julie Le Gallo & Alain Pirotte, 2018. "Panel Data Models With Spatially Dependent Nested Random Effects," Journal of Regional Science, Wiley Blackwell, vol. 58(1), pages 63-80, January.
    2. Sandrine Cazes & Sher Verick & Fares Al Hussami, 2013. "Why did unemployment respond so differently to the global financial crisis across countries? Insights from Okun’s Law," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-18, December.
    3. Kim, Chang-Jin & Nelson, Charles R, 1999. "Friedman's Plucking Model of Business Fluctuations: Tests and Estimates of Permanent and Transitory Components," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 31(3), pages 317-334, August.
    4. Baltagi, Badi H. & Fingleton, Bernard & Pirotte, Alain, 2019. "A time-space dynamic panel data model with spatial moving average errors," Regional Science and Urban Economics, Elsevier, vol. 76(C), pages 13-31.
    5. Luc Laeven & Fabian Valencia, 2020. "Systemic Banking Crises Database II," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 68(2), pages 307-361, June.
    6. Paolo Di Caro, 2017. "Testing and explaining economic resilience with an application to Italian regions," Papers in Regional Science, Wiley Blackwell, vol. 96(1), pages 93-113, March.
    7. Carmen M. Reinhart & Kenneth S. Rogoff, 2014. "Recovery from Financial Crises: Evidence from 100 Episodes," American Economic Review, American Economic Association, vol. 104(5), pages 50-55, May.
    8. Anastasios Kitsos & Paul Bishop, 2018. "Economic resilience in Great Britain: the crisis impact and its determining factors for local authority districts," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 329-347, March.
    9. Pierre-Alexandre Balland & David Rigby & Ron Boschma, 2015. "The technological resilience of US cities," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 167-184.
    10. A. M. Angulo & J. Mur & F. J. Trívez, 2018. "Measuring resilience to economic shocks: an application to Spain," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 349-373, March.
    11. Baltagi, Badi H. & Fingleton, Bernard & Pirotte, Alain, 2014. "Spatial lag models with nested random effects: An instrumental variable procedure with an application to English house prices," Journal of Urban Economics, Elsevier, vol. 80(C), pages 76-86.
    12. Eibich, Peter & Ziebarth, Nicolas, 2014. "Examining the Structure of Spatial Health Effects in Germany Using Hierarchical Bayes Models," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 49, pages 305-320.
    13. Valerie Cerra & Ugo Panizza & Sweta C. Saxena, 2013. "International Evidence On Recovery From Recessions," Contemporary Economic Policy, Western Economic Association International, vol. 31(2), pages 424-439, April.
    14. Hausmann, Ricardo & Rodriguez, Francisco & Wagner, Rodrigo, 2006. "Growth Collapses," Working Paper Series rwp06-046, Harvard University, John F. Kennedy School of Government.
    15. 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.
    16. Montmarquette, Claude & Mahseredjian, Sophie, 1989. "Does School Matter for Educational Achievement? A Two-Way Nested-Error Components Analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(2), pages 181-193, April-Jun.
    17. 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.
    18. J. C. Dissart, 2003. "Regional Economic Diversity and Regional Economic Stability: Research Results and Agenda," International Regional Science Review, , vol. 26(4), pages 423-446, October.
    19. 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.
    20. Fabio Mazzola & Iolanda Cascio & Rosalia Epifanio & Giuseppe Giacomo, 2018. "Territorial capital and growth over the Great Recession: a local analysis for Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 411-441, March.
    21. Case, Anne C, 1991. "Spatial Patterns in Household Demand," Econometrica, Econometric Society, vol. 59(4), pages 953-965, July.
    22. 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.
    23. Stefan P. T. Groot & J. L. Möhlmann & J. H. Garretsen & Henri L. F. de Groot, 2011. "The crisis sensitivity of European countries and regions: stylized facts and spatial heterogeneity," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 4(3), pages 437-456.
    24. Jean Dub� & Mario Pol�Se, 2016. "Resilience Revisited: Assessing the Impact of the 2007-09 Recession on 83 Canadian Regions with Accompanying Thoughts on an Elusive Concept," Regional Studies, Taylor & Francis Journals, vol. 50(4), pages 615-628, April.
    25. Ayda Eraydin, 2016. "Attributes and Characteristics of Regional Resilience: Defining and Measuring the Resilience of Turkish Regions," Regional Studies, Taylor & Francis Journals, vol. 50(4), pages 600-614, April.
    26. Simin Davoudi & Keith Shaw & L. Haider & Allyson Quinlan & Garry Peterson & Cathy Wilkinson & Hartmut Fünfgeld & Darryn McEvoy & Libby Porter & Simin Davoudi, 2012. "Resilience: A Bridging Concept or a Dead End?“Reframing” Resilience: Challenges for Planning Theory and PracticeInteracting Traps: Resilience Assessment of a Pasture Management System in Northern Afgh," Planning Theory & Practice, Taylor & Francis Journals, vol. 13(2), pages 299-333.
    27. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    28. 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.
    29. Mr. Paolo Mauro & Mr. Torbjorn I. Becker, 2006. "Output Drops and the Shocks That Matter," IMF Working Papers 2006/172, International Monetary Fund.
    30. Paolo Caro, 2018. "To be (or not to be) resilient over time: facts and causes," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 375-392, March.
    31. Ramey, V.A., 2016. "Macroeconomic Shocks and Their Propagation," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 71-162, Elsevier.
    32. Jong Hee Park, 2012. "A Unified Method for Dynamic and Cross‐Sectional Heterogeneity: Introducing Hidden Markov Panel Models," American Journal of Political Science, John Wiley & Sons, vol. 56(4), pages 1040-1054, October.
    33. Alessandra Faggian & Roberta Gemmiti & Timothy Jaquet & Isabella Santini, 2018. "Regional economic resilience: the experience of the Italian local labor systems," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 393-410, March.
    34. 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.
    35. Olivier J. Blanchard & Mark W. Watson, 1986. "Are Business Cycles All Alike?," NBER Chapters, in: The American Business Cycle: Continuity and Change, pages 123-180, National Bureau of Economic Research, Inc.
    36. Robert E. Hall, 2010. "Why Does the Economy Fall to Pieces after a Financial Crisis?," Journal of Economic Perspectives, American Economic Association, vol. 24(4), pages 3-20, Fall.
    37. Antweiler, Werner, 2001. "Nested random effects estimation in unbalanced panel data," Journal of Econometrics, Elsevier, vol. 101(2), pages 295-313, April.
    38. Paolo Di Caro, 2015. "Recessions, recoveries and regional resilience: evidence on Italy," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 273-291.
    39. Guillermo A. Calvo & Alejandro Izquierdo & Ernesto Talvi, 2006. "Sudden Stops and Phoenix Miracles in Emerging Markets," American Economic Review, American Economic Association, vol. 96(2), pages 405-410, May.
    40. 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.
    41. Robert J. Gordon, 1986. "The American Business Cycle: Continuity and Change," NBER Books, National Bureau of Economic Research, Inc, number gord86-1, March.
    42. Marianne Sensier & Michael Artis, 2016. "The Resilience of Employment in Wales: Through Recession and into Recovery," Regional Studies, Taylor & Francis Journals, vol. 50(4), pages 586-599, April.
    43. Ron Martin, 2012. "Regional economic resilience, hysteresis and recessionary shocks," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 1-32, January.
    44. Jerry Courvisanos & Ameeta Jain & Karim K. Mardaneh, 2016. "Economic Resilience of Regions under Crises: A Study of the Australian Economy," Regional Studies, Taylor & Francis Journals, vol. 50(4), pages 629-643, April.
    45. Carmen M. Reinhart & Kenneth S. Rogoff, 2011. "From Financial Crash to Debt Crisis," American Economic Review, American Economic Association, vol. 101(5), pages 1676-1706, August.
    46. Arthur F. Burns & Wesley C. Mitchell, 1946. "Measuring Business Cycles," NBER Books, National Bureau of Economic Research, Inc, number burn46-1, March.
    47. Bernard Fingleton & Harry Garretsen & Ron Martin, 2015. "Shocking aspects of monetary union: the vulnerability of regions in Euroland," Journal of Economic Geography, Oxford University Press, vol. 15(5), pages 907-934.
    48. Sara Davies, 2011. "Regional resilience in the 2008--2010 downturn: comparative evidence from European countries," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 4(3), pages 369-382.
    49. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    50. Silvia Rita Sedita & Ivan De Noni & Luciano Pilotti, 2017. "Out of the crisis: an empirical investigation of place-specific determinants of economic resilience," European Planning Studies, Taylor & Francis Journals, vol. 25(2), pages 155-180, February.
    51. 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.
    52. Lewis Dijkstra & Enrique Garcilazo & Philip McCann, 2015. "The effects of the global financial crisis on European regions and cities," Journal of Economic Geography, Oxford University Press, vol. 15(5), pages 935-949.
    53. 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.
    54. Marianne Sensier & Gillian Bristow & Adrian Healy, 2016. "Measuring Regional Economic Resilience across Europe: Operationalizing a complex concept," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(2), pages 128-151, June.
    55. Stijn Claessens & M. Ayhan Kose & Marco E. Terrones, 2009. "What happens during recessions, crunches and busts? [Business cycles for G-7 and European countries]," Economic Policy, CEPR;CES;MSH, vol. 24(60), pages 653-700.
    56. Bernard Fingleton & Harry Garretsen & Ron Martin, 2012. "Recessionary Shocks And Regional Employment: Evidence On The Resilience Of U.K. Regions," Journal of Regional Science, Wiley Blackwell, vol. 52(1), pages 109-133, February.
    57. Franziska Pudelko & Christian Hundt & Linus Holtermann, 2018. "Gauging two sides of regional economic resilience in Western Germany—Why sensitivity and recovery should not be lumped together," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 38(2), pages 141-189, October.
    58. D Michael Ray & Ian MacLachlan & Rodolphe Lamarche & KP Srinath, 2017. "Economic shock and regional resilience: Continuity and change in Canada's regional employment structure, 1987–2012," Environment and Planning A, , vol. 49(4), pages 952-973, April.
    59. Paolo Caro & Ugo Fratesi, 2018. "Regional determinants of economic resilience," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 235-240, March.
    60. Ugo Fratesi & Giovanni Perucca, 2018. "Territorial capital and the resilience of European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 241-264, March.
    61. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
    62. Bergmann, Heiko & Geissler, Mario & Hundt, Christian & Grave, Barbara, 2018. "The climate for entrepreneurship at higher education institutions," Research Policy, Elsevier, vol. 47(4), pages 700-716.
    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. Anastasios Kitsos & André Carrascal-Incera & Raquel Ortega-Argilés, 2019. "The Role of Embeddedness on Regional Economic Resilience: Evidence from the UK," Sustainability, MDPI, vol. 11(14), pages 1-19, July.
    2. Hundt, Christian & Holtermann, Linus & Steeger, Jonas & Bersch, Johannes, 2019. "Cluster externalities, firm capabilities, and the recessionary shock: How the macro-to-micro-transition shapes firm performance during stable times and times of crisis," ZEW Discussion Papers 19-008, ZEW - Leibniz Centre for European Economic Research.
    3. Hundt, Christian & Holtermann, Linus & Steeger, Jonas & Bersch, Johannes, 2019. "Cluster externalities, firm capabilities, and the recessionary shock: How the macro-to-micro-transition shapes firm performance during stable times and times of crisis," MPRA Paper 91802, University Library of Munich, Germany.

    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. 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.
    2. 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.
    3. Pontarollo, Nicola & Serpieri, Carolina, 2020. "A composite policy tool to measure territorial resilience capacity," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    4. 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.
    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. 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.
    7. Michele Costa & Flavio Delbono, 2021. "The Italian Geography of Regional Resilience: The Role of Cooperative Firms," Working Papers wp1166, Dipartimento Scienze Economiche, Universita' di Bologna.
    8. Giulio Cainelli & Roberto Ganau & Marco Modica, 2019. "Does related variety affect regional resilience? New evidence from Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(3), pages 657-680, June.
    9. Xin Mai & Roger C. K. Chan & Chaoqun Zhan, 2019. "Which Sectors Really Matter for a Resilient Chinese Economy? A Structural Decomposition Analysis," Sustainability, MDPI, vol. 11(22), pages 1-17, November.
    10. George J. XANTHOS & Evangelos N. DULUFAKIS, 2023. "Measurement Approaches Of Regional Economic Resilience: A Literature Review," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 47-59, June.
    11. 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.
    12. 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.
    13. 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.
    14. Hundt Christian & Grün Lennart, 2022. "Resilience and specialization – How German regions weathered the Great Recession," ZFW – Advances in Economic Geography, De Gruyter, vol. 66(2), pages 96-110, July.
    15. 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.
    16. Ugo Fratesi & Giovanni Perucca, 2018. "Territorial capital and the resilience of European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 241-264, March.
    17. 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.
    18. Jacopo Canello & Francesco Vidoli, 2020. "Investigating space‐time patterns of regional industrial resilience through a micro‐level approach: An application to the Italian wine industry," Journal of Regional Science, Wiley Blackwell, vol. 60(4), pages 653-676, September.
    19. Suat Tuysuz & Tüzin Baycan & Fatih Altuğ, 2022. "Economic impact of the COVID-19 outbreak in Turkey: analysis of vulnerability and resilience of regions and diversely affected economic sectors," Asia-Pacific Journal of Regional Science, Springer, vol. 6(3), pages 1133-1158, October.
    20. Elias Giannakis & Christos T. Papadas, 2021. "Spatial Connectivity and Regional Economic Resilience in Turbulent Times," Sustainability, MDPI, vol. 13(20), pages 1-12, October.

    More about this item

    Keywords

    resilience; shocks; resistance and recovery; regional development; regional and national determinants; economic crisis; europe;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    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:pum:wpaper:2018-02. 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: Robert Csicsics (email available below). General contact details of provider: https://edirc.repec.org/data/vamarde.html .

    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.