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

Dario Diodato and Anet Weterings (anet.weterings@pbl.nl)

No 1215, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: 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.

Keywords: regional resilience; input-output network; labor mobility; related labor flows; commuting flows; the Netherlands (search for similar items in EconPapers)
JEL-codes: J61 O18 R11 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2012-08, Revised 2012-08
New Economics Papers: this item is included in nep-geo, nep-hme, nep-lab and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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