CAN FOUNDATIONAL ECONOMY SAVE REGIONS IN CRISIS?

Mikhail Martynovich (), Teis Hansen and Karl-Johan Lundquist

No 2061, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: We perform an explorative analysis of employment patterns in the foundational economy producing mundane everyday necessities and providing welfare services across Swedish regional labour markets between 2007 and 2016. We focus specifically on hierarchical patterns in spatial distribution of foundational activities and their association – direct and through integration with other economic activities – with regional employment dynamics in times of crisis, recovery, and growth. Our findings suggest the foundational economy plays an important role as employment provider to a substantial number of Swedish workers, particularly in non-metropolitan regions. Besides, it appears to be associated with improved ability of regions to retain employment in the most acute phases of economic crisis, but only if it is well integrated into regional industrial profiles. However, its overall contribution to regional resilience in the long term appears to be rather limited.

Keywords: foundational economy; everyday economy; employment; regional resilience; crisis; recovery; Sweden (search for similar items in EconPapers)
JEL-codes: E32 J21 L16 R11 R12 R23 (search for similar items in EconPapers)
Date: 2020-12, Revised 2020-12
New Economics Papers: this item is included in nep-eur, nep-geo, nep-lma, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Can foundational economy save regions in crisis? (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:2061

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