Industry Interconnectedness and Regional Economic Growth in Germany
Urban Science
; 6(1):1, 2022.
Article
in English
| ProQuest Central | ID: covidwho-1765931
ABSTRACT
Urban systems, and regions more generally, are the epicenters of many of today’s social issues. Yet they are also the global drivers of technological innovation, and thus it is critical that we understand their vulnerabilities and what makes them resilient to different types of shocks. We take regions to be systems composed of internal networks of interdependent components. As the connectedness of those networks increases, it allows information and resources to move more rapidly within a region. Yet, it also increases the speed and efficiency at which the effects of shocks cascade through the system. Here we analyzed regional networks of interdependent industries and how their structures relate to a region’s vulnerability to shocks. Methodologically, we utilized a metric of economic connectedness called tightness which quantifies a region’s internal connectedness relative to other regions. We calculated tightness for German regions during the Great Recession, comparing it to each region’s economic performance during the shock (2007–2009) and during recovery (2009–2011). We find that tightness is negatively correlated with changes in economic performance during the shock but positively during recovery. This suggests that regional economic planners face a tradeoff between being more productive or being more vulnerable to the next economic shock.
Housing And Urban Planning; regional science; workforce; resilience; Panarchy; co-occurrence; industry structure; Great Recession; COVID-19 pandemic; Economic shock; Regional economic development; Economic performance; Recovery; Connectedness; Vulnerability; Technological change; Innovations; Economic growth; Employment; Pandemics; Regions; Social issues; Gross Domestic Product--GDP; Planners; Labor market; COVID-19; United States--US; Germany
Full text:
Available
Collection:
Databases of international organizations
Database:
ProQuest Central
Language:
English
Journal:
Urban Science
Year:
2022
Document Type:
Article
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