IDEAS home Printed from https://ideas.repec.org/a/bla/econpa/v42y2023i2p153-171.html
   My bibliography  Save this article

Economic Resilience in a Pandemic: Did COVID‐19 Policy Effects Override Industry Diversity Impacts in Australia?

Author

Listed:
  • Sveta Angelopoulos
  • Ashton de Silva
  • Yonatan Navon
  • Sarah Sinclair
  • Maria Yanotti

Abstract

The industry diversity thesis of economic resilience to economic shocks is embedded in community development policy across Australia. The idea being that in the event of an economic shock some industries will prove more recession‐proof than others. The greater the industry diversity, the greater the likelihood of off‐setting industry effects, resulting in greater economic resilience. The COVID‐19 pandemic and the associated restrictions created a unique natural experiment to explore whether the industry diversity thesis holds true under the conditions of a global health pandemic. In this policy paper, we use JobKeeper applications as a proxy for decreased economic resilience. We explore if Australian local government areas (LGAs) with higher industry diversity had less necessity for JobKeeper. We also briefly consider if concentrations of certain industries acted as a better economic buffer to the COVID‐19 economic shock. We observe that as diversity increases, economic resilience strengthens except for Victoria (where the association is inverted). This observation has important implications for current and future policy formation and implementation across all layers of government.

Suggested Citation

  • Sveta Angelopoulos & Ashton de Silva & Yonatan Navon & Sarah Sinclair & Maria Yanotti, 2023. "Economic Resilience in a Pandemic: Did COVID‐19 Policy Effects Override Industry Diversity Impacts in Australia?," Economic Papers, The Economic Society of Australia, vol. 42(2), pages 153-171, June.
    • Handle: RePEc:bla:econpa:v:42:y:2023:i:2:p:153-171
    DOI: 10.1111/1759-3441.12384
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1759-3441.12384
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1759-3441.12384?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Oded Izraeli & Kevin J. Murphy, 2003. "The effect of industrial diversity on state unemployment rate and per capita income," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(1), pages 1-14, February.
    2. 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.
    3. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, vol. 43(2), pages 409-429, February.
    4. Ron Martin, 2012. "Regional economic resilience, hysteresis and recessionary shocks," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 1-32, January.
    5. Fabiano Compagnucci & Gabriele Morettini, 2020. "Improving resilience at the local level: The location of essential services within inner areas. Three case studies in the Italian Marche region," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(5), pages 767-792, October.
    6. Xiaobing Shuai, 2013. "Will specialization continue forever? A case study of interactions between industry specialization and diversity," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 1-24, February.
    7. Jing Xiao & Ron Boschma & Martin Andersson, 2018. "Resilience in the European Union: the effect of the 2008 crisis on the ability of regions in Europe to develop new industrial specializations," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(1), pages 15-47.
    8. 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.
    Full references (including those not matched with items on IDEAS)

    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. Martini, Barbara, 2020. "Resilience and economic structure. Are they related?," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 62-91.
    2. 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.
    3. Charlie Joyez & Raja Kali & Catherine Laffineur, 2023. "Occupational Coherence and Local Labor Market Performance: Evidence from France," GREDEG Working Papers 2023-20, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    4. 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.
    5. Marianne Sensier & Elvira Uyarra, 2020. "Investigating the Governance Mechanisms that Sustain Regional Economic Resilience and Inclusive Growth," Economics Discussion Paper Series 2005, Economics, The University of Manchester.
    6. Jan Ženka & Marcela Chreneková & Lucie Kokešová & Veronika Svetlíková, 2021. "Industrial Structure and Economic Resilience of Non-Metropolitan Regions: An Empirical Base for the Smart Specialization Policies," Land, MDPI, vol. 10(12), pages 1-21, December.
    7. O'Connor, Sean & Doyle, Eleanor & Doran, Justin, 2018. "Diversity, employment growth and spatial spillovers amongst Irish regions," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 260-267.
    8. Roberto Antonietti & Ron Boschma, 2021. "Social capital, resilience, and regional diversification in Italy [Social capital, innovation and growth: evidence from Europe]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(3), pages 762-777.
    9. 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.
    10. Yun-Hsuan Lee & Li-Ling Kao & Wen-Hsiang Liu & Jen-Te Pai, 2023. "A Study on the Economic Resilience of Industrial Parks," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    11. Jaroslav Rusnák & Filip Lehocký, 2019. "Aglomeračné výhody a technologická náročnosť odvetví priemyselnej výroby na slovensku [Agglomeration Economies and Technology Intensity of Industry Sector in Slovakia]," Politická ekonomie, Prague University of Economics and Business, vol. 2019(4), pages 426-443.
    12. 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.
    13. Gergő Tóth & Zoltán Elekes & Adam Whittle & Changjun Lee & Dieter F. Kogler, 2022. "Technology Network Structure Conditions the Economic Resilience of Regions," Economic Geography, Taylor & Francis Journals, vol. 98(4), pages 355-378, August.
    14. Zachary T. Keeler & Heather M. Stephens, 2023. "What matters for lagging regions? The role of self‐employment and industrial diversity in distressed areas," Growth and Change, Wiley Blackwell, vol. 54(4), pages 962-1001, December.
    15. 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.
    16. Vitor Klein Schmidt & Aurora Carneiro Zen & Bernardo Fernandes Soares & Bruno Anicet Bittencourt, 2023. "Trajectory and cluster resilience elements: The case of the Brazilian wine cluster of the Serra Gaúcha," Growth and Change, Wiley Blackwell, vol. 54(2), pages 596-624, June.
    17. Xiaojing Li & Jing Chen, 2023. "Global or Local Spatial Spillovers? Industrial Diversity and Economic Resilience in the Middle Reaches of the Yangtze River Urban Agglomeration, China," Sustainability, MDPI, vol. 15(14), pages 1-17, 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. Shanshan Ye & Mingming Cao, 2023. "The Impact of Industrial Linkage Structures on Urban Economic Resilience in China in the Context of the COVID-19 Shock," Sustainability, MDPI, vol. 15(6), pages 1-15, March.
    20. Filippo Di Pietro & Patrizio Lecca & Simone Salotti, 2021. "Regional economic resilience in the European Union: a numerical general equilibrium analysis," Spatial Economic Analysis, Taylor & Francis Journals, vol. 16(3), pages 287-312, July.

    More about this item

    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:bla:econpa:v:42:y:2023:i:2:p:153-171. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.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.