Determinants of Regional Economic Resilience in the Context of Global Depression: A Case Study of the Pearl River Delta, China

Hanying Wang () and Botong Song
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Hanying Wang: Shenzhen University
Botong Song: Shenzhen University

A chapter in Proceedings of the 25th International Symposium on Advancement of Construction Management and Real Estate, 2021, pp 427-437 from Springer

Abstract: Abstract As economic globalization is deepened, the Pearl River Delta region is facing increasingly complex internal and external disturbance. In the context of global depression, this paper introduces the concept of “economic resilience” in order to understand the capability of the leading regions in the economic development of China to withstand the impacts of uncertainty. In this paper, it conducts quantitative analysis and qualitative explanation to the determinations of economic resilience of the Pearl River Delta region by using the fixed effects regression model. The results show that: ① The stronger unrelated variety and higher levels of regional innovation that a region has, the easier it will be to reduce or even eliminate the losses caused by the economic crisis; ② The regions with strong related variety, large scale of export base, a high proportion of regional fiscal expenditures, and a high ratio of SMEs have lower capabilities to resist economic risks and are more susceptible to crisis interference. Therefore, the government should focus on diversified industrial development and promote industrial transformation and upgrading; encourage innovation and increase investment in scientific research and development; optimize the structure of fiscal expenditures and improve the incentive mechanism of consumption to expand domestic demands; increase support for SMEs and avoid the losses caused by the economic crisis to SMEs.

Keywords: Regional economic resilience; Related variety; Unrelated variety; Pearl River Delta (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-16-3587-8_28

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DOI: 10.1007/978-981-16-3587-8_28

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