Industrial Structure and a Tradeoff Between Productivity and Economic Resilience
The structures of regional economies play a critical role in determining both a region’s productivity and its resilience to shocks. We extend previous work on the regional occupation and skills structure by analyzing the effect of a region’s industry structure. We operationalize the concept of econo...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2022-12-01
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| Series: | Studies in Business and Economics |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/sbe-2022-0057 |
| _version_ | 1828041210303873024 |
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| author | Shutters Shade T Waters Keith |
| author_facet | Shutters Shade T Waters Keith |
| author_sort | Shutters Shade T |
| collection | DOAJ |
| description | The structures of regional economies play a critical role in determining both a region’s productivity and its resilience to shocks. We extend previous work on the regional occupation and skills structure by analyzing the effect of a region’s industry structure. We operationalize the concept of economic structure by constructing a network of interdependent economic components, employing ecological techniques of co-occurrence analysis to infer interactions between industries. For each U.S. metropolitan statistical area, we create an aggregate measure of economic tightness that captures the degree of interconnectedness among a region’s industries. We find that industry tightness, which we find is partly driven by rare industry pairs, is positively correlated with a region’s economic productivity, negatively correlated with a region’s change in productivity following the Great Recession. This study contributes to an understanding of the tradeoff between productivity and resilience, which is intended to help policy makers that face similar real-world tradeoffs. |
| first_indexed | 2024-04-10T17:12:32Z |
| format | Article |
| id | doaj.art-10aad3fee28d4f968833d86594399049 |
| institution | Directory Open Access Journal |
| issn | 2344-5416 |
| language | English |
| last_indexed | 2024-04-10T17:12:32Z |
| publishDate | 2022-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Studies in Business and Economics |
| spelling | doaj.art-10aad3fee28d4f968833d865943990492023-02-05T19:46:45ZengSciendoStudies in Business and Economics2344-54162022-12-0117322424010.2478/sbe-2022-0057Industrial Structure and a Tradeoff Between Productivity and Economic ResilienceShutters Shade T0Waters Keith1School of Complex Adaptive Systems, Arizona State University, USAGlobal Climate Forum, Berlin, GermanySchar School of Policy and Government, George Mason University, USAThe structures of regional economies play a critical role in determining both a region’s productivity and its resilience to shocks. We extend previous work on the regional occupation and skills structure by analyzing the effect of a region’s industry structure. We operationalize the concept of economic structure by constructing a network of interdependent economic components, employing ecological techniques of co-occurrence analysis to infer interactions between industries. For each U.S. metropolitan statistical area, we create an aggregate measure of economic tightness that captures the degree of interconnectedness among a region’s industries. We find that industry tightness, which we find is partly driven by rare industry pairs, is positively correlated with a region’s economic productivity, negatively correlated with a region’s change in productivity following the Great Recession. This study contributes to an understanding of the tradeoff between productivity and resilience, which is intended to help policy makers that face similar real-world tradeoffs.https://doi.org/10.2478/sbe-2022-0057economic structureregional scienceresilienceco-occurrencepanarchy |
| spellingShingle | Shutters Shade T Waters Keith Industrial Structure and a Tradeoff Between Productivity and Economic Resilience Studies in Business and Economics economic structure regional science resilience co-occurrence panarchy |
| title | Industrial Structure and a Tradeoff Between Productivity and Economic Resilience |
| title_full | Industrial Structure and a Tradeoff Between Productivity and Economic Resilience |
| title_fullStr | Industrial Structure and a Tradeoff Between Productivity and Economic Resilience |
| title_full_unstemmed | Industrial Structure and a Tradeoff Between Productivity and Economic Resilience |
| title_short | Industrial Structure and a Tradeoff Between Productivity and Economic Resilience |
| title_sort | industrial structure and a tradeoff between productivity and economic resilience |
| topic | economic structure regional science resilience co-occurrence panarchy |
| url | https://doi.org/10.2478/sbe-2022-0057 |
| work_keys_str_mv | AT shuttersshadet industrialstructureandatradeoffbetweenproductivityandeconomicresilience AT waterskeith industrialstructureandatradeoffbetweenproductivityandeconomicresilience |