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Gauging two sides of regional economic resilience in Western Germany. Why resitance and recovery should not be lumped together

Author

Listed:
  • Franziska Pudelko

    (Department of Geography, Philipps University Marburg)

  • Christian Hundt

    (Department of Geography, Ruhr University Bochum)

Abstract

The paper empirically investigates the economic resilience of Western German regions in the wake of the Great Recession of 2008/2009. In particular, the focus is laid on the influence of regional agglomeration economies (arising from specialization, related and unrelated variety) and the explicit sudivision of short-term resilience into resistance and recovery. The necessity to distinguish between different factors and phases is well documented by means of the OLS regression results as all three types of agglomeration economies reveal varying, if not opposing directions of influences across the resistance and recovery phase. A pregnant example refers to regional specialization. Not only does it show a negative impact on resistance while exerting a positive influence during the recovery phase, but it is also mediated by the regional share in manufacturing workforce. This workforce reveals opposing phase-specific facts itself. hence, ignoring the two-component structure of short-term resilience entails the risk of imprecise, if not false conclusions on the driving mechanisms stabilizing and/or destabilizing regional economies in times of crisis.

Suggested Citation

  • Franziska Pudelko & Christian Hundt, 2017. "Gauging two sides of regional economic resilience in Western Germany. Why resitance and recovery should not be lumped together," Working Papers on Innovation and Space 2017-01, Philipps University Marburg, Department of Geography.
    • Handle: RePEc:pum:wpaper:2017-01
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    References listed on IDEAS

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      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
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    4. Matthias Duschl, 2014. "Regional resilience and fat tails: A stochastic analysis of firm growth rate distributions of German regions," Working Papers on Innovation and Space 2014-01, Philipps University Marburg, Department of Geography.
    5. Eckey, Hans-Friedrich & Schwengler, Barbara & Türck, Matthias, 2007. "Vergleich von deutschen Arbeitsmarktregionen," IAB-Discussion Paper 200703, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    Cited by:

    1. Franziska Pudelko & Christian Hundt & Linus Holtermann, 2018. "Gauging two sides of regional economic resilience in Western Germany—Why sensitivity and recovery should not be lumped together," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 38(2), pages 141-189, October.

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    More about this item

    Keywords

    regional economic resilience; resistance; recovery; agglomeration economies; industry structure;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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