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Geographical scale, industrial diversity, and regional economic stability

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  • Jing Chen

Abstract

This paper compares the empirical relationship between industrial diversity and economic stability across different geographical scales, including counties, states, Economic Areas, and Metropolitan Statistical Areas, in the contiguous U.S. between 2000 and 2014. It is found that this relationship varies greatly when it is analyzed across these four geographical scales. Meanwhile, several scale‐related problems, such as the modifiable areal unit problem and the small population problem, are introduced to economic diversity literature and further discussed with this variability of the diversity–stability relationship. This paper concludes that the spatial scale problem as well as the optimal unit can be study dependent. Thus, when choosing analytical units to quantify regional economic structure for a specific study, future research should pay attention to scale‐related problems.

Suggested Citation

  • Jing Chen, 2019. "Geographical scale, industrial diversity, and regional economic stability," Growth and Change, Wiley Blackwell, vol. 50(2), pages 609-633, June.
    • Handle: RePEc:bla:growch:v:50:y:2019:i:2:p:609-633
    DOI: 10.1111/grow.12287
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    Cited by:

    1. Behr, Andreas & Schiwy, Christoph & Hong, Lucy, 2022. "Impact of Agglomeration Economies on Regional Performance in Germany," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 52(1), May.
    2. 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.
    3. Marina Malkina, 2019. "How Change in Industry Mix Can Improve the Financial Performance of Regional Economies: Evidence from the Portfolio Approach," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(6), pages 1561-1575.
    4. Akberdina, V. V. & Sergeeva, A. S., 2020. "Strategic Priorities for the Development of Middle Regions in Russia," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 6(2), pages 89-99.
    5. Josh Matti & Amir B. Ferreira Neto, 2023. "Consolidated city–county governments and economic stability," Economics of Governance, Springer, vol. 24(3), pages 263-286, September.
    6. Ziyan Zheng & Fangdao Qiu & Xinlin Zhang, 2020. "Heterogeneity of correlation between the locational condition and industrial transformation of regenerative resource‐based cities in China," Growth and Change, Wiley Blackwell, vol. 51(2), pages 771-791, June.
    7. Jing Chen, 2020. "The Impact of Cluster Diversity on Economic Performance in U.S. Metropolitan Statistical Areas," Economic Development Quarterly, , vol. 34(1), pages 46-63, February.

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