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Combining Productivity with Economic Resilience in European Regions

Author

Listed:
  • Giulia Iannone

    (Gran Sasso Science Institute)

  • Andrea Ascani

    (Gran Sasso Science Institute)

  • Alessandra Faggian

    (Gran Sasso Science Institute)

  • Alexandra Tsvetkova

    (OECD Trento Centre for Local Development)

Abstract

There is an increasing need for today’s economies to be both productive and resilient, but the interplay between these two fundamental factors for economic growth has been neglected in the literature. This paper aims at filling this gap by adopting an evolutionary framework for the joint study of productivity and resilience and proposes a regional taxonomy based on characteristics of the industrial structure. Data on European regions at the NUTS2 level are used first to classify regions as productive and/or resilient and then to analyze how certain regional features, in particular related and unrelated variety, relate to a combined measure of productivity and resilience. Results show that the spatial distribution of productive and resilient regions follows a core– periphery pattern and that related and unrelated variety have significant but heterogeneous effects on regions’ economic performance.

Suggested Citation

  • Giulia Iannone & Andrea Ascani & Alessandra Faggian & Alexandra Tsvetkova, 2023. "Combining Productivity with Economic Resilience in European Regions," Discussion Paper series in Regional Science & Economic Geography 2023-07, Gran Sasso Science Institute, Social Sciences, revised Oct 2024.
  • Handle: RePEc:ahy:wpaper:wp44
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    More about this item

    Keywords

    productivity; regional resilience; industrial structure; relatedness;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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