Regional Economic Resilience Research Articles

Understanding how digital infrastructure construction could promote sustainable development

Progress made in environmental protection may negatively affect regional socioeconomic development, reducing or impairing the ability of local economic systems to defend against external shocks, culminating in weakened economic resilience. Implementing carbon abatement programs without risking economic resilience is therefore an urgent problem for the international community, especially for its emerging national economies. Digital infrastructure construction (DIC), as a driving force of technological progress and structural transformation, may offer a viable solution to that problem. Here, we used county-level data for China, the biggest emerging economy in the world, to investigate whether and how Smart City Pilot policy (SCP, a policy close to DIC) has lowered regional carbon emissions and influenced economic resilience. We find that the SCP could significantly promote carbon abatement goals, and this result is robust under several tests. Further, chain-based mediating effect analysis revealed that the SCP's beneficial impact could have arisen by first promoting innovation and then productivity, and public concern acting as a stressor that pressures officials to engage in environmental governance. Furthermore, our results show the SCP is capable of bolstering regional economic resilience, and could even offset or negate the adverse effects of strict environmental regulation on that resilience. However, the positive effects of the SCP on carbon abatement in China's developed counties, or ones located in a resources-based city, were not significant. Altogether, our empirical results highlight how DIC can serve as a way to help achieve sustainable development, but more studies on its contributing role are clearly needed.

How Does Innovation-Collaboration Network Structure Influence Regional Economic Resilience?

This paper examines whether different structures of co-patenting networks affect regional economic adaptation and adaptability in divergent ways. Adaptation differentiates from adaptability by recovering in a pre-shock growth path, while adaptability entails forging a new growth path. Focusing on computer, electronic, and electrical equipment manufacturing industries in U.S. metropolitan and micropolitan areas from 1990 to 2012, the study reveals that complete networks, characterized by closely connected nodes, promote adaptation but weaken adaptability. In contrast, coalitional networks, featuring loosely connected subgroups, enhance adaptability but hurt adaptation. The study contributes to regional economic resilience literature by empirically demonstrating the trade-off relationship between adaptation and adaptability from network structures’ perspective. Practically, the study helps policy makers to effectively allocate stimuli, such as grants and tax incentives, to develop targeted co-patenting networks to improve adaptation or adaptability.

Economic shocks and employment shifts across industrial sectors in English regions

This paper examines changes in employment and job allocation across various industrial sectors in English regions over the years 2009–2021. The aim is to investigate regional resilience by analysing the impact of economic shocks on the make-up and productivity of English regions via dynamic shift-share analysis. The evidence reveals that employment in key industries across English regions remained largely unaffected by economic shocks, also due to the COVID-19 pandemic which prevented occupational shifts through furloughing and essential worker selection. But we also find that while comparative lack of specialisation insulated many English regions from the more damaging aspects of exogenous shocks, the resulting economic turmoil in these regions impacted key sectors differently. The findings contribute to our understanding of regional economic resilience and how it is influenced by industrial diversity, productivity, and economic policy.

Do you have feet in your shoes? Innovation and resilience in a footwear industrial district in Brazil

is study examines innovation as a shock reaction in the process of regional economic resilience, focusing on a footwear industrial district in southern Brazil during the COVID-19 pandemic. e results show that innovation, a mechanism of adaptability, emerged in the industrial district not only to support economic recovery, but also to mitigate the adverse effects. Firms implemented novel marketing and sales processes, and some also had to change their information and communication systems or organisational structure to support e-commerce. As such, this study highlights the influence of adaptability on economic resistance.

The impact of digital policies on urban economic resilience under the low-carbon background: A deep identification based on environmental regulation and industrial digital transformation

With over exploitation and increasingly severe environmental pollution, traditional economic growth models are no longer able to promote high-quality regional economic development. Especially in recent years, the limitations of resources and environment, global geopolitical conflicts, and other factors have brought enormous uncertainty to the economic development of each country. To cope with the uncertainty of economic development, it is necessary to use the digital economy formed by the new generation of information technology to strengthen the economic resilience of various regions. This study collected panel data from 30 provinces and cities in China from 2013 to 2022, using the PSM-DID model to examine the subtle relationship between the formulation of digital policies in different cities and their economic resilience. Specifically, environmental regulations and industrial digital transformation play an important role in the process of urban digital policies affecting economic resilience. The research findings of this article emphasize the crucial role of digital policies in addressing the current challenges of economic uncertainty. Through empirical research, the results show that the strategic implementation of digital policies can not only effectively promote the digital transformation of traditional industries, but also strengthen the role of environmental regulations in promoting sustainable development of industries. The digital transformation of industries and sustainable development will significantly enhance regional innovation capabilities and ultimately strengthen regional economic resilience.

Techno-economic and environmental assessment of green hydrogen and ammonia production from solar and wind energy in the republic of Djibouti: A geospatial modeling approach

This study conducts a thorough economic and technical analysis to assess the viability of green hydrogen and green ammonia production using renewable energy sources in the Republic of Djibouti. We explore the economic competitiveness of utilizing wind and solar power for sustainable energy production through various measures including levelized cost of energy (LCOE), hydrogen (LCOH), and ammonia (LCOA). Our analysis incorporates sensitivity assessments and Monte Carlo simulations to predict financial feasibility and environmental impact, focusing on CO2 emission reductions. A cost mapping of electricity, green hydrogen, and green ammonia from solar and wind resources was created to find Djibouti's most cost-effective production sites. The feasibility of exporting green ammonia to neighboring countries with high fertilizer demand was also evaluated using rail and truck transport scenarios. Key findings demonstrate that Moulouhlé, endowed with robust wind and solar resources, presents a strategic site for deploying renewable energy technologies. Wind energy, with a lower LCOE of 0.066 $/kWh compared to solar's 0.093 $/kWh, emerges as a more cost-effective solution for both hydrogen and ammonia production. Notably, wind-powered hydrogen production costs are 2.25 $/kgH2, significantly lower than solar-powered costs at 4.17 $/kgH2. In terms of green ammonia, wind power achieves production costs of 399.76 $/tonNH3, outperforming solar power which stands at 537.11 $/tonNH3. Additionally, our study evaluates the logistics of exporting green ammonia, determining rail transport as a more economically viable option than trucking. This research not only underscores Djibouti's potential as a leader in green energy exportation but also aligns with global decarbonization efforts, showcasing significant CO2 savings—154.94 Mt annually from wind. This work emphasizes the importance of strategic resource utilization in Djibouti, offering insights critical for stakeholders in making informed decisions about investing in renewable energy infrastructures. The outcomes suggest a promising future for regional energy sustainability and economic resilience, fostering a transition towards low-carbon energy systems.

Evolution of Resilience Spatiotemporal Patterns and Spatial Correlation Networks in African Regional Economies

This paper comprehensively utilizes the entropy-TOPSIS method, Lyapunov index, and kernel density estimation to measure the spatiotemporal evolution characteristics of regional economic resilience in 52 African countries (regions) from 2008 to 2019. It also examines the spatial network characteristics of regional economic resilience in each country (region) through gravity models and social network analysis. The findings reveal that: (1) Although the resilience of African regional economies fluctuates, it generally shows an improving trend. Traditional economic powers and regional giants such as Libya, Nigeria, South Africa, Egypt, Morocco, and Tunisia demonstrate outstanding performance in economic resilience. (2) In terms of scale resilience, the countries along the North African Mediterranean coast exhibit particularly prominent advantages. However, the overall performance of Africa in fiscal resilience and openness resilience tends to be weak. Industrial resilience is influenced by colonial legacies and tends to stabilize. (3) The differences in economic resilience values and the fluctuation trajectories of economic resilience levels converge. North African economies exhibit resilience far higher than the mean and other regions, while East, West, and Central Africa consistently perform below the mean in the long term. Southern Africa’s gap from the mean is relatively small, leading to a stalemate. The fluctuation amplitude of differences within each region varies. (4) The overall level of resilience in African regional economies has steadily improved, displaying a trend of polarization. There is evident spatial polarization in West Africa, with Southern Africa demonstrating a trend of multipolarity transitioning towards bipolarity. Conversely, North Africa strengthens its features of bipolar differentiation, while East and Central Africa exhibit tendencies towards multipolarity. (5) Despite some fluctuations in the spatial network of regional economic resilience around 2016, connections among African countries have become increasingly tight, gradually forming three major spatial correlation network clusters: the North African Mediterranean coast, the West–Central African Pan-Gulf of Guinea region, and the East–South African Rift Valley region. Nigeria holds a prominent position as a regional core. Zambia, Cameroon, and the Central African Republic have played certain regional core roles at different times. Nigeria and South Africa also demonstrate significant intermediary roles, while Zambia, Cameroon, and Burkina Faso act as bridges in different periods of network connections. Based on the characteristics of spatial correlation networks, African regions gradually form four major cohesive subgroups and eight sub-subgroups.

New-type infrastructure and urban economic resilience: Evidence from China

Rising global uncertainties pose challenges to the resilience of economic development, and new-type infrastructure, referring to a system that is supported by next-generation information technology, can be a crucial stabilizing factor in the digital era to overcome uncertainties. This study uses 5244 observations from 276 cities in China from 2003 to 2021 to investigate the impact of new-type infrastructure on urban economic resilience. The empirical findings indicate that new-type infrastructure can effectively enhance regional economic resilience, and urban economic resilience can be improved in the digital age. New-type infrastructure can effectively mitigate the adverse impact of Corona Virus disease 2019 (COVID-19) on economic resilience. The effect of new-type infrastructure on economic resilience is larger in central regions, cities with medium and large economic scales, and cities with well-developed traditional infrastructure. New-type infrastructure exhibits threshold effects with changes in mechanism variables, decreasing as the threshold of resource dependence is crossed and increasing as the threshold of capital deepening and human capital is crossed. New-type infrastructure can enhance economic resilience by promoting innovation, including digital and green innovation. In addition, new-type infrastructure can cultivate emerging industries, advance industrial structure optimization, and promote collaborative agglomeration, which also contributes to enhancing economic resilience.

The Impact of Population Shrinkage on Economic Resilience in Mountain Cities: A Case Study of Guizhou Province, China

With the recent changes in population structure and continuous urbanization, the degree of population shrinkage in mountain cities has increased, especially under the impact of the COVID-19 epidemic, and the economic development of such mountain cities has become a prominent issue. The epidemic has not only exposed the vulnerability of these cities to economic development but also aggravated the negative impact of population contraction, bringing about new challenges and pressures related to regional population development and economic resilience. This change has become an important topic in the study of mountain cities. Therefore, taking Guizhou Province as a case study, this work applies the population change rate, the entropy method, and a mediation effect model to study the spatiotemporal evolution of population shrinkage and economic resilience, and it explores how population shrinkage influences economic resilience. The results reveal the following: (1) Few counties experienced population shrinkage in Guizhou Province from 2013 to 2017, indicating a sporadic distribution pattern, whereas the degree of population shrinkage increased rapidly from 2018 to 2022, revealing an east–west symmetrical distribution pattern, with Guiyang city located on the central axis. (2) There are significant regional differences in the spatial distribution of the level of economic resilience between the two periods. Under the impact of COVID-19, from 2019 to 2022, although the overall level of economic resilience increased, the level of resilience in most counties tended to decrease. (3) Regarding the mediating effect, population shrinkage affected the level of economic resilience through general public budget expenditure, foreign trade investment, new urban employment, and GDP. The abovementioned findings are helpful for providing theoretical support and empirical guidance for the sustainable development of mountain cities in the face of population contraction, economic challenges, and promoting regional coordination.

Has urban public service equalization reduced regional differences in economic resilience?

We delve into whether the equalization of basic public services can mitigate regional disparities in China's economic resilience. Our analysis reveals that COVID-19 has diminished economic resilience and exacerbated regional differences. Notably, these regional disparities constitute the primary cause of spatial variations in economic resilience. Despite the initially low level of basic public services in Chinese cities, there is a discernible upward trend, indicating a gradual narrowing of regional disparities. Furthermore, we uncover a substantial positive correlation between the equalization of public services and variations in regional economic resilience, thereby offering fresh empirical evidence that the equalization of public services can help bridge the gap in regional economic resilience.

Digital inclusive finance and regional economic resilience: Evidence from China's 283 Cities over 2011-2021

This paper uses the data from 283 prefecture-level cities in China from 2011 to 2021 to study the impact of digital inclusive finance on the resilience of the regional economy. The research results indicate that developing digital inclusive finance can significantly enhance regional economic resilience. The mechanism test results suggest that developing digital inclusive finance has improved regional economic resilience mainly by promoting regional innovation capacity and improving regional resource allocation efficiency. In addition, digital inclusive finance can significantly promote economic resilience in regions with higher economic and finance development levels. However, in regions with lower economic and financial development levels, it can significantly decrease regional economic resilience.

Analysis of Regional Economic Resilience through Comparative Advantages of Sectoral Growth

The objective of this study is to analyze the economic resilience of regions during the COVID-19 period that affected the Indonesian regional economy. Economic resilience can be identified by examining the development of leading sectors in the regional economy. This study uses secondary data in the form of time series using Gross Regional Domestic Product (GRDP) data obtained from the Central Bureau of Statistics of Batu City, the Central Bureau of Statistics of Malang City, and the Central Bureau of Statistics of Kediri City from 2018 to 2021. All three cities are located in East Java Province, Indonesia. The analysis in this study involves using three methods: Location Quotient, Shift Share, and Klassen typology. The analysis results reveal that Batu City and Malang City show strong competitiveness and comparative advantages. On the other hand, Kediri City demonstrates relatively low competitiveness and comparative advantage, which can be attributed to the impact of the COVID-19 shock. Additionally, research results show that the sectors in Malang City have experienced rapid growth, with all sectors developing faster than in other regions. In contrast, the sectors contributing to Batu and Kediri’s Gross Regional Domestic Product (GRDP) have experienced delayed development. The results of this study confirm that regional economic resilience still exists through the development of sectoral businesses that contribute to the overall value of Gross Regional Domestic Product in various regencies and cities within East Java Province. Keywords: basic sector, resilience, shift share, location quotient, regional economy

Towards a comprehensive agency-based resilience approach: myopia and hypermetropia in the Turkish wine industry

Abstract The Turkish wine industry presents an interesting case to explore firm behaviour, institutions and regional economic resilience. With political Islam gaining popularity over the past two decades, the local industry has faced many challenges at the policy level. These include an enormous tax burden, bans on alcohol advertising, promotion and sponsorship, and the prohibition on online sales of alcoholic products. Under these conditions, many producers do not have the necessary skills to manoeuvre institutional challenges therefore economic survival mainly depends on local agents’ own capabilities. Understanding the resilience of an industry as such calls for an institutionally nuanced and agent-centric micro-level focus. In this context, the paper seeks to establish a theoretical framework that facilitates an explanation of how agents’ inherent systematic anomalies, biases and spatio-temporal cognitive limitations restrict their resilience and the twin notions of myopia and hypermetropia serve as the basis for our argument. The producer firms of the Thrace wine-making cluster in the northwest corner of Türkiye constitute our empirical focus. Our findings illustrate that the impact of adverse sectoral policies on local firms are heterogeneous and that there exists at least three types of winemaking firms in Türkiye depending on their agendas and cognitive (dis)abilities.

Analysis of the integrated role of the Yangtze River Delta based on the industrial economic resilience of cities during COVID-19

The enhancement of regional comprehensive development ability is significantly impacted by the study on the implementation effect of regional integration strategies. The integration strategy’s impact on urban development during COVID-19 in the Yangtze River Delta(YRD) is unclear. According to prior industrial transfer theory, Hefei, Anhui’s capital, is difficult to transfer industries, and other YRD cities push industry integration in Anhui. This study employs the theory of economic and land resource use to examine the resilience of the industrial economy during an epidemic by using industrial land as a representation of industrial economic development. The three cities in Anhui—Wuhu, Maanshan, and Chuzhou (Wu-ma-Chu) were selected as the research area. The study employed the UNet deep learning method to detect the land use types in Wu-ma-Chu. The land transfer matrix and the standard deviation ellipse were utilised to research the alterations in industrial land use and the spatial distribution of industrial output value, respectively. The results showed that the industrial land in Machu continued to grow during the outbreak, highlighting the resilience of the region’s industrial economy. During 2019–2022, the elliptical ring of industrial output value is distributed in Nanjing, revealing the radiating role of Nanjing in integrating into the integration of the YRD. This confirms China’s YRD integration strategy, strengthens regional economic resilience, and encourages coordinated regional economic development.

Green finance, market integration, and regional economic resilience

In this study, we test the implications of green finance for regional economic resilience. Based on prefecture-level data of China, we find robust evidence that green finance is positively related to a prefecture's economic resilience. In addition, we find that market integration amplifies the positive relationship between green finance and economic resilience. Overall, our research gains new insights into the consequences of green finance, thus contributing to the literature.

Managerial Economic Strategies In Improving Micro Business

Micro, small and medium enterprises or better known as MSMEs. Currently its existence is a priority for the government because it is considered capable of significantly developing the national economy in Indonesia. In developing the national economy in Indonesia, the priority is Micro, Small and Medium Enterprises (MSMEs). MSMEs are the backbone of the people's economic system to reduce the problem of poverty and their development is able to expand the economic base and can make a significant contribution to improving the regional economy and national economic resilience. This research is a qualitative descriptive study using a library research approach. The data source in this research is a secondary data source. Data collection techniques using keyword searches, subject searches and the latest scientific articles. The results of the research found that: The development of MSMEs is not free from challenges that urgently need to find solutions, including human resource, managerial, monitoring and evaluation, trust and capital issues so that they can improve and develop MSMEs in order to increase national economic resilience.

Regional resilience and the network structure of inter-industry labour flows

ABSTRACT This paper explores how the network structure of local inter-industry labour flows relates to regional economic resilience across 72 local labour markets in Sweden. Drawing on recent advancements in network science, we stress test these networks against the sequential elimination of their nodes, finding substantial heterogeneity in network robustness across regions. Regression analysis with least absolute shrinkage and selection operator (LASSO) in the context of the 2008 financial crisis indicates that labour flow network robustness is a prominent structural predictor of employment change during crisis. These findings elaborate on how variation in the self-organisation of regional economies as complex systems makes for more or less resilient regions.

Community capitals and economic resilience: insights from the Great Lakes Region post-Great Recession

ABSTRACT Recessions can cause regional economic changes, disproportionately impacting specific groups. To address these challenges, strategies are vital for boosting regional economic resilience. This article integrates qualitative insights from focus groups into a quantitative description of economic resilience using the community capitals framework and a structural equation model, drawing on data from the aftermath of the Great Recession in the Great Lakes Region. Findings highlight key characteristics to bolster resilience capacity, emphasising the significance of diverse short- and long-term strategies for community preparedness. These research results can provide insights for incorporating economic resilience into the regional planning process.

Research on the impact of marine economic development in coastal areas on regional economic resilience: evidence from China

Marine economy is a valuable pillar for the development of coastal areas. It is of profound significance to explore the influence of marine economy development on economic resilience of coastal areas. This paper constructs an economic resilience assessment framework based on resistance, adaptability, and evolutionary power, adopts the entropy method to calculate the economic resilience development level in China’s coastal areas from 2006 to 2019, and examines in detail the driving factors affecting the economic resilience from the indicator level. Furthermore, panel regression models are used to explore the influence of marine economic development on the economic resilience of China’s coastal areas and its mechanism of action. The results show that: (1) China’s coastal areas have an overall trend of rising economic resilience. The spatiotemporal differentiation characteristics of different economic resilience factors are significant. (2) Factors such as regional economic scale, innovation input, industrial transformation, resident income, consumption scale, degree of marketization, and financial scale are key factors to enhance the economic system resilience of coastal areas. (3) There is a significant positive impact of the marine economy on the economic resilience of coastal areas, and this promotion effect is regulated and constrained by the level of diversification of marine industries and the level of concentration of marine industries. (4) Heterogeneity analysis shows that there are significant individual differences in the impact of Marine economy on economic resilience, and its marginal effect first increases and then decreases. The corresponding policy implications are further analyzed based on the research results.

Digital Nomad and Analysis of Regional Economic Resilience of Tourism Sector in Bali Province After Covid-19 Pandemic

This study aims to analyze the impact of the pandemic on Bali's regional economic resilience and how the workcation trend brought by digital nomad tourists able to encourage tourism recovery in Bali. The research method used is descriptive-analytical, including examining documents and statements from experts that explained the response to the economic shocks that occurred in Bali Province. Data sources were obtained from tourism ministry performance reports, BPS data, news articles and accredited journals. The study revealed that the resistance phase is demonstrated by the disruption of the tourism sector when the COVID-19 pandemic broke out, causing economic Bali to decline. The reorientation phase is demonstrated by the ability of government and business actors to adjust and adapt from shocks. The workcation trend brought by digital nomads is suitable for application during the adaptation period. The recovery phase is demonstrated by the revival of tourism in Bali Province with an increase in the number of foreign tourists. One of them comes from digital nomad tourists who increase regional income. Based on analysis using the regional economic resilience model, Bali Province in 2023 will approach economically resilient status.