[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ipt/termod/202003.html
   My bibliography  Save this paper

Regional economic resilience in the European Union: a numerical general equilibrium analysis

Author

Listed:
Abstract
Using a spatial general equilibrium model, this paper investigates the resilience of EU regions under three alternative recessionary shocks, each of them activating different economic adjustments and mechanisms. We measure the vulnerability, resistance, and recoverability of regions and we identify key regional features affecting the ability of regions to withstand to and recover from unexpected external shocks. The analysis reveals that the response of regions varies according to the nature of the external disturbance and to the pre-shock regional characteristics. Finally, it seems that resilience also depends on factors' mobility.

Suggested Citation

  • Filippo Di Pietro & Patrizio Lecca & Simone Salotti, 2020. "Regional economic resilience in the European Union: a numerical general equilibrium analysis," JRC Working Papers on Territorial Modelling and Analysis 2020-03, Joint Research Centre.
    • Handle: RePEc:ipt:termod:202003
    as

    Download full text from publisher

    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC120508
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. d'Artis Kancs & Patrizio Lecca, 2018. "Long‐term social, economic and fiscal effects of immigration into the EU: The role of the integration policy," The World Economy, Wiley Blackwell, vol. 41(10), pages 2599-2630, October.
    2. 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.
    3. 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.
    4. Ron Boschma, 2015. "Towards an Evolutionary Perspective on Regional Resilience," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 733-751, May.
    5. Paolo Rizzi & Paola Graziano & Antonio Dallara, 2018. "A capacity approach to territorial resilience: the case of European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 285-328, March.
    6. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
    7. 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.
    8. Ron Martin, 2012. "Regional economic resilience, hysteresis and recessionary shocks," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 1-32, January.
    9. 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.
    10. Persyn, Damiaan & Torfs, Wouter & Kancs, d’Artis, 2014. "Modelling regional labour market dynamics: Participation, employment and migration decisions in a spatial CGE model for the EU," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 29, pages 77-90.
    11. 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.
    12. Francesco Di Comite & d'Artis Kancs & Patrizio Lecca, 2018. "Modeling agglomeration and dispersion in space: The role of labor migration, capital mobility and vertical linkages," Review of International Economics, Wiley Blackwell, vol. 26(3), pages 555-577, August.
    13. Mark Thissen & Olga Ivanova & Giovanni Mandras & Trond Husby, 2019. "European NUTS 2 regions: construction of interregional trade-linked Supply and Use tables with consistent transport flows," JRC Working Papers on Territorial Modelling and Analysis 2019-01, Joint Research Centre.
    14. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    15. Henderson, J. Vernon, 2003. "Marshall's scale economies," Journal of Urban Economics, Elsevier, vol. 53(1), pages 1-28, January.
    16. Justin Doran & Bernard Fingleton, 2016. "Employment Resilience in Europe and the 2008 Economic Crisis: Insights from Micro-Level Data," Regional Studies, Taylor & Francis Journals, vol. 50(4), pages 644-656, April.
    17. Patrizio Lecca & Martin Christensen & Andrea Conte & Giovanni Mandras & Simone Salotti, 2020. "Upward pressure on wages and the interregional trade spillover effects under demand‐side shocks," Papers in Regional Science, Wiley Blackwell, vol. 99(1), pages 165-182, February.
    18. Bennett Harrison & Maryellen R. Kelley & Jon Gant, 1996. "Innovative Firm Behavior and Local Milieu: Exploring the Intersection of Agglomeration, Firm Effects, and Technological Change," Economic Geography, Taylor & Francis Journals, vol. 72(3), pages 233-258, July.
    19. 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.
    20. Justin Doran & Bernard Fingleton, 2015. "Resilience from the micro perspective," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 205-223.
    21. Adam Rose & Shu‐Yi Liao, 2005. "Modeling Regional Economic Resilience to Disasters: A Computable General Equilibrium Analysis of Water Service Disruptions," Journal of Regional Science, Wiley Blackwell, vol. 45(1), pages 75-112, February.
    22. Patrizio Lecca & Javier Barbero Jimenez & Martin Aaroe Christensen & Andrea Conte & Francesco Di Comite & Jorge Diaz-Lanchas & Olga Diukanova & Giovanni Mandras & Damiaan Persyn & Stylianos Sakkas, 2018. "RHOMOLO V3:A Spatial Modelling Framework," JRC Research Reports JRC111861, Joint Research Centre.
    23. Lino Briguglio & Gordon Cordina & Nadia Farrugia & Stephanie Vella, 2009. "Economic Vulnerability and Resilience: Concepts and Measurements," Oxford Development Studies, Taylor & Francis Journals, vol. 37(3), pages 229-247.
    24. Briguglio, Lino, 1995. "Small island developing states and their economic vulnerabilities," World Development, Elsevier, vol. 23(9), pages 1615-1632, September.
    25. Susan Christopherson & Jonathan Michie & Peter Tyler, 2010. "Regional resilience: theoretical and empirical perspectives," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 3(1), pages 3-10.
    26. 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.
    27. Alessi, Lucia & Benczur, Peter & Campolongo, Francesca & Cariboni, Jessica & Manca, Anna Rita & Menyhert, Balint & Pagano, Andrea, 2018. "The resilience of EU Member States to the financial and economic crisis. What are the characteristics of resilient behaviour?," JRC Research Reports JRC111606, Joint Research Centre.
    28. 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.
    29. Christensen, Martin & Weiers, Georg & Wolski, Marcin, 2019. "The 2019 assessment of the macroeconomic effects of the European Fund for Strategic Investments with the RHOMOLO-EIB model," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 45, pages 5-15.
    30. 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.
    31. Elias Giannakis & Adriana Bruggeman, 2017. "Economic crisis and regional resilience: Evidence from Greece," Papers in Regional Science, Wiley Blackwell, vol. 96(3), pages 451-476, August.
    32. 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.
    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. Wenjie Li & Chun Luo & Yiwei He & Yu Wan & Hongbo Du, 2023. "Estimating Inter-Regional Freight Demand in China Based on the Input–Output Model," Sustainability, MDPI, vol. 15(12), pages 1-16, June.
    2. 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.
    3. Marina Yu. Malkina, 2021. "How the 2020 pandemic affected tax revenues in Russian regions?," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 16(2), pages 239-260, June.
    4. Chang-Tai Lee & Jin-Li Hu & Ming-Hsin Kung, 2022. "Economic Resilience in the Early Stage of the COVID-19 Pandemic: An Across-Economy Comparison," Sustainability, MDPI, vol. 14(8), pages 1-25, April.
    5. Liangang Li & Shuoya Liu & Chen Li & Pingyu Zhang & Kevin Lo, 2022. "What Matters for Regional Economic Resilience Amid Multi Shock Situations: Structural or Agency? Evidence from Resource-Based Cities in China," Sustainability, MDPI, vol. 14(9), pages 1-18, May.
    6. Deng, Yue & Jiang, Wanyi & Wang, Zeyu, 2023. "Economic resilience assessment and policy interaction of coal resource oriented cities for the low carbon economy based on AI," Resources Policy, Elsevier, vol. 82(C).
    7. Sonja Brlečić Valčić & Anita Peša & Dijana Čičin-Šain, 2022. "Analysis of the Eurozone’s Resilience to Crises and Disturbances in the Context of EU Development Strategies—Contemporary Approach Using Anfis," Sustainability, MDPI, vol. 14(23), pages 1-28, November.
    8. Yi Xu & Jian Li & Yongcan Yan & Pengcheng Gao & Heng Xie, 2022. "Can Coordinated Development of Manufacturing and Information Communication Service Industries Boost Economic Resilience? An Empirical Study Based on China’s Provinces," Sustainability, MDPI, vol. 14(17), pages 1-15, August.
    9. Benczur, Peter & Joossens, Elisabeth & Manca, Anna Rita & Menyhert, Balint & Zec, Slavica, 2020. "How resilient are the European regions? Evidence from the societal response to the 2008 financial crisis," JRC Research Reports JRC121554, Joint Research Centre.
    10. Meysam Amirsadat & Kooresh Omidipoor & Amir Bastaminia & Mohammad Mehdi Meshkinghalam, 2024. "Identifying and evaluating the dimensions and components affecting the resilience of flood-stricken communities: Konarak city," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 120(12), pages 10607-10634, September.
    11. Barbero, Javier & Diukanova, Olga & Gianelle, Carlo & Salotti, Simone & Santoalha, Artur, 2024. "Technologically related diversification: One size does not fit all European regions," Research Policy, Elsevier, vol. 53(3).
    12. Gabriela Carmen Pascariu & Peter Nijkamp & Karima Kourtit, 2023. "Regional science knowledge needs for the recovery of the Ukrainian spatial economy: A Q‐analysis," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(1), pages 75-94, February.
    13. Bogdan-Vasile Ileanu & Adrian Pana, 2024. "From 2008–2011 Great Recession to COVID-19 pandemic: an analysis of resilience metrics in European regions," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 51(4), pages 1037-1073, November.
    14. M. Yu. Malkina, 2022. "Revenues of Russian Subfederal Budgets under the Pandemic: A Spatial Reversal," Regional Research of Russia, Springer, vol. 12(4), pages 544-555, December.
    15. Ruihan Wang & Zheng Lu & Chunyu Tang, 2024. "How does urbanisation affect agricultural economic resilience? Evidence from China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(10), pages 513-526.
    16. Liangang Li & Pingyu Zhang & Chengxin Wang, 2022. "What Affects the Economic Resilience of China’s Yellow River Basin Amid Economic Crisis—From the Perspective of Spatial Heterogeneity," IJERPH, MDPI, vol. 19(15), pages 1-20, July.
    17. Elias Giannakis & Christos T. Papadas, 2021. "Spatial Connectivity and Regional Economic Resilience in Turbulent Times," Sustainability, MDPI, vol. 13(20), pages 1-12, October.
    18. Tao Zhao & Jinwei Huo & Degang Yang & Xinhuan Zhang & Danni Lu & Mingjie Cui & Rongqian Lu & Yaning Chen, 2022. "Study on the Spatial Differentiation Characteristics and Influencing Factors of China’s Economic Resilience under Different Shocks," Sustainability, MDPI, vol. 14(24), pages 1-15, December.
    19. Hongjia Liu & Yongheng Fang & Jiamin Liu & Yaqian Chen, 2023. "The Interaction of Cultural and Creative Industries Clusters and Regional Economic Resilience from the Perspective of Spatial Analysis," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    20. Damilola Giwa-Daramola & Harvey S. James, 2023. "COVID-19 and Microeconomic Resilience in Sub-Saharan Africa: A Study on Ethiopian and Nigerian Households," Sustainability, MDPI, vol. 15(9), pages 1-25, May.
    21. Yaping Zhang & Jianjun Zhang & Ke Wang & Xia Wu, 2021. "An Empirical Perception of Economic Resilience Responded to the COVID-19 Epidemic Outbreak in Beijing–Tianjin–Hebei Urban Agglomeration, China: Characterization and Interaction," IJERPH, MDPI, vol. 18(19), pages 1-17, October.
    22. KYDROS Dimitrios & FILENTA Pagona, 2022. "Literature Review of Economic and Regional Development through Quantitative Methods and Social Network Analysis," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    23. Grant Allan & Gioele Figus & Peter G. McGregor & J. Kim Swales, 2021. "Resilience in a behavioural/Keynesian regional model," Environment and Planning A, , vol. 53(4), pages 858-876, June.

    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. 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.
    2. Pontarollo, Nicola & Serpieri, Carolina, 2020. "A composite policy tool to measure territorial resilience capacity," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    3. 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.
    4. 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.
    5. 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.
    6. Silvia Rocchetta & Andrea Mina & Changjun Lee & Dieter F Kogler, 2022. "Technological knowledge spaces and the resilience of European regions," Journal of Economic Geography, Oxford University Press, vol. 22(1), pages 27-51.
    7. Vinko Muštra & Blanka Šimundić & Zvonimir Kuliš, 2020. "Does innovation matter for regional labour resilience? The case of EU regions," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(5), pages 955-970, October.
    8. Vinko Muštra & Blanka Škrabić Perić & Smiljana Pivčević, 2023. "Cultural heritage sites, tourism and regional economic resilience," Papers in Regional Science, Wiley Blackwell, vol. 102(3), pages 465-482, June.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. Paolo Rizzi & Paola Graziano & Antonio Dallara, 2018. "A capacity approach to territorial resilience: the case of European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 285-328, March.
    16. Martini, Barbara, 2020. "Resilience and economic structure. Are they related?," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 62-91.
    17. Guandong Song & Sheng Zhong & Liuguang Song, 2022. "Spatial Pattern Evolution Characteristics and Influencing Factors in County Economic Resilience in China," Sustainability, MDPI, vol. 14(14), pages 1-20, July.
    18. Mathieu P A Steijn & Pierre-Alexandre Balland & Ron Boschma & David L Rigby, 2023. "Technological diversification of U.S. cities during the great historical crises," Journal of Economic Geography, Oxford University Press, vol. 23(6), pages 1303-1344.
    19. Riccardo Cappelli & Fabio Montobbio & Andrea Morrison, 2021. "Unemployment resistance across EU regions: the role of technological and human capital," Journal of Evolutionary Economics, Springer, vol. 31(1), pages 147-178, January.
    20. 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.

    More about this item

    Keywords

    Rhomolo; Region; Growth; computable general equilibrium model; regional economic resilience; economic shocks.;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ipt:termod:202003. 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: Publication Officer (email available below). General contact details of provider: https://edirc.repec.org/data/ipjrces.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.