IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v12y2022i4p21582440221142507.html
   My bibliography  Save this article

How Regions React to Economic Crisis: Regional Economic Resilience in a Chinese Perspective

Author

Listed:
  • Meiyue Li
  • Xiaowen Wang

Abstract

The severity of the 2007–2008 global financial crisis and the spatial heterogeneity of its impact have accelerated the study of regional economic resilience. However, few have investigated whether pre-crisis determinants impact regional economic resilience. This study explores the factors influencing regional economic resilience across 284 Chinese cities from 2003 to 2019. We use data from the National Bureau of Statistics in China and apply a multilevel logistic regression model. The results indicate the magnitude of the province effects on regional performance during the financial crisis. The results show that regional economic resilience is significantly shaped by provincial trajectories and region size. Furthermore, economic agglomeration, manufacturing, education, infrastructure, and financial development make regions less susceptible to external shocks and more resilient to financial crises. The results provide supportive evidence for governments to adopt region-based policies and thereby improve their performance.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:sagope:v:12:y:2022:i:4:p:21582440221142507
    DOI: 10.1177/21582440221142507
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440221142507
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440221142507?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. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "The Aftermath of Financial Crises," American Economic Review, American Economic Association, vol. 99(2), pages 466-472, May.
    2. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
    3. Paolo Di Caro, 2017. "Testing and explaining economic resilience with an application to Italian regions," Papers in Regional Science, Wiley Blackwell, vol. 96(1), pages 93-113, March.
    4. Paul Bishop, 2012. "Knowledge, diversity and entrepreneurship: a spatial analysis of new firm formation in Great Britain," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(7-8), pages 641-660, September.
    5. Gilles Duranton & Diego Puga, 2020. "The Economics of Urban Density," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 3-26, Summer.
    6. Ron Martin & Ben Gardiner, 2019. "The resilience of cities to economic shocks: A tale of four recessions (and the challenge of Brexit)," Papers in Regional Science, Wiley Blackwell, vol. 98(4), pages 1801-1832, August.
    7. Juan R. Cuadrado-Roura & Andrés Maroto, 2016. "Unbalanced regional resilience to the economic crisis in Spain: a tale of specialisation and productivity," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 153-178.
    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.
    9. Roberta Capello & Andrea Caragliu & Ugo Fratesi, 2015. "Spatial heterogeneity in the costs of the economic crisis in Europe: are cities sources of regional resilience?," Journal of Economic Geography, Oxford University Press, vol. 15(5), pages 951-972.
    10. Elias Giannakis & Adriana Bruggeman, 2020. "Regional disparities in economic resilience in the European Union across the urban–rural divide," Regional Studies, Taylor & Francis Journals, vol. 54(9), pages 1200-1213, September.
    11. Steven Brakman & Harry Garretsen & Charles van Marrewijk, 2015. "Regional resilience across Europe: on urbanisation and the initial impact of the Great Recession," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 225-240.
    12. 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.
    13. Elias Giannakis & Adriana Bruggeman, 2017. "Determinants of regional resilience to economic crisis: a European perspective," European Planning Studies, Taylor & Francis Journals, vol. 25(8), pages 1394-1415, August.
    14. Stefan P. T. Groot & J. L. Möhlmann & J. H. Garretsen & Henri L. F. de Groot, 2011. "The crisis sensitivity of European countries and regions: stylized facts and spatial heterogeneity," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 4(3), pages 437-456.
    15. Ayda Eraydin, 2016. "Attributes and Characteristics of Regional Resilience: Defining and Measuring the Resilience of Turkish Regions," Regional Studies, Taylor & Francis Journals, vol. 50(4), pages 600-614, April.
    16. Stefania Cosci & Valentina Sabato, 2007. "Income and Employment Dynamics in Europe," Regional Studies, Taylor & Francis Journals, vol. 41(3), pages 295-309.
    17. 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.
    18. 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.
    19. Roberto Cellini & Gianpiero Torrisi, 2014. "Regional Resilience in Italy: A Very Long-Run Analysis," Regional Studies, Taylor & Francis Journals, vol. 48(11), pages 1779-1796, November.
    20. Alastair Brown, 2016. "Resilience in diversity," Nature Climate Change, Nature, vol. 6(7), pages 658-658, July.
    21. 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.
    22. Marianne Sensier & Michael Artis, 2016. "The Resilience of Employment in Wales: Through Recession and into Recovery," Regional Studies, Taylor & Francis Journals, vol. 50(4), pages 586-599, April.
    23. Ron Martin, 2012. "Regional economic resilience, hysteresis and recessionary shocks," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 1-32, January.
    24. Jochen Monstadt & Martin Schmidt, 2019. "Urban resilience in the making? The governance of critical infrastructures in German cities," Urban Studies, Urban Studies Journal Limited, vol. 56(11), pages 2353-2371, August.
    25. Allan Peñafiel Mera & Chandra Balijepalli, 2020. "Towards improving resilience of cities: an optimisation approach to minimising vulnerability to disruption due to natural disasters under budgetary constraints," Transportation, Springer, vol. 47(4), pages 1809-1842, August.
    26. Raffaele Lagravinese, 2015. "Economic crisis and rising gaps North–South: evidence from the Italian regions," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 331-342.
    27. Adelheid Holl, 2018. "Local employment growth patterns and the Great Recession: The case of Spain," Journal of Regional Science, Wiley Blackwell, vol. 58(4), pages 837-863, September.
    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. 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.
    30. Ugo Fratesi & Andrés Rodríguez-Pose, 2016. "The crisis and regional employment in Europe: what role for sheltered economies?," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 33-57.
    31. Juntao Tan & Kevin Lo & Fangdao Qiu & Xinlin Zhang & Hongbo Zhao, 2020. "Regional economic resilience of resource‐based cities and influential factors during economic crises in China," Growth and Change, Wiley Blackwell, vol. 51(1), pages 362-381, March.
    32. 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.
    33. 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.
    34. Lawrence H Summers, 2014. "U.S. Economic Prospects: Secular Stagnation, Hysteresis, and the Zero Lower Bound," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 49(2), pages 65-73, April.
    35. Theodosios Palaskas & Yannis Psycharis & Antonis Rovolis & Chrysostomos Stoforos, 2015. "The asymmetrical impact of the economic crisis on unemployment and welfare in Greek urban economies," Journal of Economic Geography, Oxford University Press, vol. 15(5), pages 973-1007.
    36. Dani Rodrik, 2013. "Unconditional Convergence in Manufacturing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(1), pages 165-204.
    37. Paolo Caro & Ugo Fratesi, 2018. "Regional determinants of economic resilience," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 235-240, March.
    38. 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.
    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. Van Egeraat Chris & Curran Declan & Breathnach Proinnsias, 2023. "Regional economic resistance and divergence in Ireland, 2011–22," Administration, Sciendo, vol. 71(3), pages 63-86, August.

    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. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. Elias Giannakis & Christos T. Papadas, 2021. "Spatial Connectivity and Regional Economic Resilience in Turbulent Times," Sustainability, MDPI, vol. 13(20), pages 1-12, October.
    7. 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.
    8. Giulia Urso & Marco Modica & Alessandra Faggian, 2019. "Resilience and Sectoral Composition Change of Italian Inner Areas in Response to the Great Recession," Sustainability, MDPI, vol. 11(9), pages 1-15, May.
    9. Adelheid Holl, 2018. "Local employment growth patterns and the Great Recession: The case of Spain," Journal of Regional Science, Wiley Blackwell, vol. 58(4), pages 837-863, September.
    10. Lisa Gianmoena & Vicente Rios, 2018. "The Determinants of Resilience in European Regions During the Great Recession: a Bayesian Model Averaging Approach," Discussion Papers 2018/235, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    11. 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.
    12. Anping Chen & Nicolaas Groenewold, 2022. "Regional Resilience in China: The Response of the Provinces to the Growth Slowdown," The Review of Regional Studies, Southern Regional Science Association, vol. 52(1), pages 74-103.
    13. Rios, Vicente & Gianmoena, Lisa, 2020. "The link between quality of government and regional resilience in Europe," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 1064-1084.
    14. Florin Oprea & Mihaela Onofrei & Dan Lupu & Georgeta Vintila & Gigel Paraschiv, 2020. "The Determinants of Economic Resilience. The Case of Eastern European Regions," Sustainability, MDPI, vol. 12(10), pages 1-11, May.
    15. 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.
    16. 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.
    17. Giovanni Marin & Marco Modica, 2019. "The Survival of Italian Individual Firms to Local Demand Shocks During the Great Recession," SEEDS Working Papers 0119, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jan 2019.
    18. Giovanni Marin & Marco Modica, 2021. "Local demand shocks and firms' survival: An application to the Italian economy during the Great Recession," Papers in Regional Science, Wiley Blackwell, vol. 100(3), pages 745-775, June.
    19. 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.
    20. 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.

    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:sae:sagope:v:12:y:2022:i:4:p:21582440221142507. 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: SAGE Publications (email available below). General contact details of provider: .

    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.