Gauging two sides of regional economic resilience in Western Germany. Why resitance and recovery should not be lumped together

Franziska Pudelko and Christian Hundt
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Franziska Pudelko: Department of Geography, Philipps University Marburg

No 2017-01, Working Papers on Innovation and Space from Philipps University Marburg, Department of Geography

Abstract: The paper empirically investigates the economic resilience of Western German regions in the wake of the Great Recession of 2008/2009. In particular, the focus is laid on the influence of regional agglomeration economies (arising from specialization, related and unrelated variety) and the explicit sudivision of short-term resilience into resistance and recovery. The necessity to distinguish between different factors and phases is well documented by means of the OLS regression results as all three types of agglomeration economies reveal varying, if not opposing directions of influences across the resistance and recovery phase. A pregnant example refers to regional specialization. Not only does it show a negative impact on resistance while exerting a positive influence during the recovery phase, but it is also mediated by the regional share in manufacturing workforce. This workforce reveals opposing phase-specific facts itself. hence, ignoring the two-component structure of short-term resilience entails the risk of imprecise, if not false conclusions on the driving mechanisms stabilizing and/or destabilizing regional economies in times of crisis.

Keywords: regional economic resilience; resistance; recovery; agglomeration economies; industry structure (search for similar items in EconPapers)
JEL-codes: E32 R11 R12 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2017-03
New Economics Papers: this item is included in nep-geo, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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