IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i13p5686-d1428296.html
   My bibliography  Save this article

Industry Network Structure Determines Regional Economic Resilience: An Empirical Study Using Stress Testing

Author

Listed:
  • Nan Qiao

    (School of Business Administration, Liaoning Technical University, Huludao 125105, China)

  • Chengjun Ji

    (School of Business Administration, Liaoning Technical University, Huludao 125105, China)

Abstract

We evaluate the network robustness of industrial capabilities across China’s provincial administrative regions, focusing on their resilience in the wake of the 2008 economic crisis. By adopting a novel network science methodology within the context of economic geography, we leverage co-classification data from the China Statistical Yearbook to conduct stress tests on regional industrial resilience. The findings indicate a considerable variability in robustness among provincial industry networks. Through regression analysis, it is evident that regions with more robust industrial network structures exhibit greater resilience in employment rates in response to both random and targeted disruptions. Notably, regions characterized by high employment levels coupled with weak industrial foundations are identified as particularly vulnerable, facing significant challenges in sustaining economic resilience. This study highlights the imperative for further in-depth research into the relationship between the structural dynamics of regional economic networks and their resilience to economic shocks, emphasizing the critical role of robust industrial infrastructures in enhancing regional economic stability.

Suggested Citation

  • Nan Qiao & Chengjun Ji, 2024. "Industry Network Structure Determines Regional Economic Resilience: An Empirical Study Using Stress Testing," Sustainability, MDPI, vol. 16(13), pages 1-24, July.
  • Handle: RePEc:gam:jsusta:v:16:y:2024:i:13:p:5686-:d:1428296
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/13/5686/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/16/13/5686/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Justin Doran & Bernard Fingleton, 2018. "US Metropolitan Area Resilience: Insights from dynamic spatial panel estimation," Environment and Planning A, , vol. 50(1), pages 111-132, 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. Frank Neffke & Matté Hartog & Ron Boschma & Martin Henning, 2018. "Agents of Structural Change: The Role of Firms and Entrepreneurs in Regional Diversification," Economic Geography, Taylor & Francis Journals, vol. 94(1), pages 23-48, January.
    4. Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(2), pages 167-185, March.
    5. Ron Martin, 2012. "Regional economic resilience, hysteresis and recessionary shocks," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 1-32, January.
    6. Daron Acemoglu & Vasco M. Carvalho & Asuman Ozdaglar & Alireza Tahbaz‐Salehi, 2012. "The Network Origins of Aggregate Fluctuations," Econometrica, Econometric Society, vol. 80(5), pages 1977-2016, September.
    7. Soomi Lee & Shu Wang, 2023. "Impacts of political fragmentation on inclusive economic resilience: Examining American metropolitan areas after the Great Recession," Urban Studies, Urban Studies Journal Limited, vol. 60(1), pages 26-45, January.
    8. Frans Hermans, 2021. "The contribution of statistical network models to the study of clusters and their evolution," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 379-403, April.
    9. Jarno Hoekman & Koen Frenken & Frank Oort, 2009. "The geography of collaborative knowledge production in Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 721-738, September.
    10. Lee, Yong-Jin Alex & Kim, Jinwon & Jang, Seongsoo & Ash, Kevin & Yang, Eunjung, 2021. "Tourism and economic resilience," Annals of Tourism Research, Elsevier, vol. 87(C).
    11. Ricardo Hausmann & César Hidalgo, 2011. "The network structure of economic output," Journal of Economic Growth, Springer, vol. 16(4), pages 309-342, December.
    12. Dieter F. Kogler, 2015. "Editorial: Evolutionary Economic Geography - Theoretical and Empirical Progress," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 705-711, May.
    13. Adam Whittle & Dieter F. Kogler, 2020. "Related to what? Reviewing the literature on technological relatedness: Where we are now and where can we go?," Papers in Regional Science, Wiley Blackwell, vol. 99(1), pages 97-113, February.
    14. Bustos, Sebastián & Yıldırım, Muhammed A., 2022. "Production Ability and economic growth," Research Policy, Elsevier, vol. 51(8).
    15. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    16. Anne Ter Wal & Ron Boschma, 2009. "Applying social network analysis in economic geography: framing some key analytic issues," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 739-756, September.
    17. Don J. Webber & Adrian Healy & Gillian Bristow, 2018. "Regional Growth Paths and Resilience: A European Analysis," Economic Geography, Taylor & Francis Journals, vol. 94(4), pages 355-375, August.
    18. Réka Albert & Hawoong Jeong & Albert-László Barabási, 2000. "Error and attack tolerance of complex networks," Nature, Nature, vol. 406(6794), pages 378-382, July.
    19. Igor Linkov & Benjamin Trump & Joshua Trump & Gianluca Pescaroli & Aleksandrina Mavrodieva & Abhilash Panda, 2022. "Stress-test the resilience of critical infrastructure," Nature, Nature, vol. 603(7902), pages 578-578, March.
    20. Jinran Chen & Lijuan Xie, 2019. "Industrial policy, structural transformation and economic growth: evidence from China," Frontiers of Business Research in China, Springer, vol. 13(1), pages 1-19, December.
    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. 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.
    2. Koen Frenken & Frank Neffke & Alje van Dam, 2023. "Capabilities, institutions and regional economic development: a proposed synthesis," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(3), pages 405-416.
    3. Hundt, Christian & Holtermann, Linus & Steeger, Jonas & Bersch, Johannes, 2019. "Cluster externalities, firm capabilities, and the recessionary shock: How the macro-to-micro-transition shapes firm performance during stable times and times of crisis," ZEW Discussion Papers 19-008, ZEW - Leibniz Centre for European Economic Research.
    4. Caviggioli, F. & Colombelli, A. & De Marco, A. & Scellato, G. & Ughetto, E., 2023. "The impact of university patenting on the technological specialization of European regions: a technology-level analysis," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    5. Ron Boschma, 2017. "Relatedness as driver behind regional diversification: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 1702, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2017.
    6. Balázs Lengyel & Rikard H. Eriksson, 2017. "Co-worker networks, labour mobility and productivity growth in regions," Journal of Economic Geography, Oxford University Press, vol. 17(3), pages 635-660.
    7. 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.
    8. Hidalgo, César A., 2023. "The policy implications of economic complexity," Research Policy, Elsevier, vol. 52(9).
    9. 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.
    10. S. Stavropoulos & F. G. Oort & M. J. Burger, 2020. "Heterogeneous relatedness and firm productivity," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(2), pages 403-437, October.
    11. Ron Boschma, 2015. "Towards an Evolutionary Perspective on Regional Resilience," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 733-751, May.
    12. Grillitsch, Markus, 2014. "Institutional Change and Economic Evolution in Regions," Papers in Innovation Studies 2014/1, Lund University, CIRCLE - Centre for Innovation Research.
    13. Balázs Lengyel & Rikard H. Eriksson, 2015. "Co-worker networks and productivity growth in regions," Papers in Evolutionary Economic Geography (PEEG) 1513, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    14. Adam Whittle & Balázs Lengyel & Dieter F. Kogler, 2020. "Understanding Regional Branching Knowledge Diversification via Inventor Collaboration Networks," Papers in Evolutionary Economic Geography (PEEG) 2006, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2020.
    15. Ron Boschma, 2021. "Global Value Chains from an Evolutionary Economic Geography perspective: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 2134, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    16. Martin Henning & Orsa Kekezi, 2023. "Upward job mobility in local economies," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(3), pages 431-444.
    17. Ron Boschma & Koen Frenken, 2015. "Evolutionary Economic Geography," Papers in Evolutionary Economic Geography (PEEG) 1518, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    18. Markus Grillitsch, 2014. "Regional Transformation: Institutional Change and Economic Evolution in Regions," ERSA conference papers ersa14p1481, European Regional Science Association.
    19. Alessia Lo Turco & Daniela Maggioni, 2016. "On firms’ product space evolution: the role of firm and local product relatedness," Journal of Economic Geography, Oxford University Press, vol. 16(5), pages 975-1006.
    20. Hundt, Christian & Holtermann, Linus & Steeger, Jonas & Bersch, Johannes, 2019. "Cluster externalities, firm capabilities, and the recessionary shock: How the macro-to-micro-transition shapes firm performance during stable times and times of crisis," MPRA Paper 91802, University Library of Munich, Germany.

    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:gam:jsusta:v:16:y:2024:i:13:p:5686-:d:1428296. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.