Determinants of regional resilience to economic crisis: a European perspective

The impact of the economic crisis has been highly asymmetric across the European regions. The objective of this paper is to investigate the determinants of resilience to economic crisis across European regions. Regional economic resilience was assessed based on employment changes during 2008–2013, while socioeconomic determinants were analysed pre-crisis (2002–2007). A highly heterogeneous pattern of resilience was observed within countries, while significant differences were also revealed between the continental northern-central regions and the southern periphery. A multilevel logistic regression model indicated the magnitude of country-effects on the performance of regional employment during crisis periods. Both EU-referenced and country-referenced regional resilience identified the positive effect of accessibility and the negative effect of a large manufacturing sector in the ability of regions to withstand recessionary shocks. Education and economic development level positively affected the resilience of both large and small regional European economies. Investing in education enhances the spatial homogeneity across Europe in terms of its ability to react to economic shocks. The results reveal the importance of narrowing disparities among regions and formulating targeted and differentiated regional development policies at country level, taking into consideration the size of the economy of the regions.     

Regional economic resilience: the role of national and regional policies

In recent years, economic resilience has become a popular term in both theory and policy practice. This interest was triggered by the fact that some regional economies were extremely vulnerable, while others have managed to overcome, more or less effectively, the worse consequences of the current economic crisis. Within this context, questions arise regarding the role that policies at both the national and subnational levels can play in shaping regional economic resilience. Although high in the academic and political agenda, understanding the policy and governance aspects of resilience still remains a relatively underdeveloped area. The paper contributes to this debate focusing on an area which has been most severely hit by crises, the Region of West Macedonia, in Greece. The case study builds on the historical trajectory of the region in order to explain how different types of policies have influenced the ability of West Macedonia to respond to economic slumps and crises of the last 30 years. Evidence suggests that national protectionist policies largely explain not only resilience of the region against previous crises, but also its vulnerability towards the still ongoing economic crisis.     

Measuring structural social capital in a cluster policy network: insights from the Basque Country

Cluster Associations (CAs) attempt to promote competitiveness through inter-firm collaboration, and are generally seen as drivers of social capital formation in the region. We map in this paper, by using Social Network Analysis, the cluster policy network of the Basque Country in 2013, which may be considered a proxy of the structural dimension of social capital in the region. Besides, we identify the central agents of this network and attempt to explain the reasons for their centrality and the roles that they play. We take the affiliation of an organization to at least two CAs as a first indicator of the overall pattern of connections within the cluster policy network. Later on, we filter it with data about the Boards of Directors of CAs, and the Basque Contact Points created to concur with the Seventh Framework Programme for Research launched by the European Commission. We contend that those organizations that are present in these three networks form a ‘small world’ that numerous studies have shown to be favourable for creative output, where they might play a dual role of gatekeepers of knowledge and innovation within and between clusters and drivers of bridging social capital formation in the Basque Country.     

Income Inequality and Wealth Concentration in the Recent Crisis

This article shows that the increase of income inequality and global wealth concentration was an important driver for the financial and Eurozone crisis. The high levels of income inequality resulted in balance of payment imbalances and growing debt levels. Rising wealth concentration contributed to the crisis because the increasing asset demand from the rich played a key role in the growth of the structured credit market and enabled poor and middle‐income households to accumulate increasing amounts of debt. This analysis thereby puts both income and wealth inequality at the epicentre of the recent crisis, and as crucial for social scientists analysing the causes of the crisis. The authors’ findings suggest that the policy response to the crisis should not be limited to financial regulation but must involve policies to address inequality by increasing the bargaining power of labour as well as redistributive tax policies.     

Do EU Regional Policies Favour Regional Entrepreneurship? Empirical Evidence from Spain and Germany

The European Commission in the scope of its cohesion policy tries to increase competitiveness of the European Union (EU) regions by supporting, beside many other instruments, entrepreneurial activities in the EU sub-national regions. This paper sheds an empirical light on the relationship between entrepreneurial activities and entrepreneurial perceptions on the one hand and the economic performance of regions eligible for EU regional policies in Spain and Germany on the other. Based on empirical data on the NUTS2 level, there will be analysis of whether previous EU support has later had an impact on entrepreneurial activities and/or entrepreneurial perception in the regions. The results show empirical evidence for a relationship between entrepreneurial activities and EU regional policies. However, other determinants such as gender and the role model function have an even stronger impact. Some of the results may help to increase the effectiveness of EC regional policies and of regional policies of the national governments, especially if the interdependence of entrepreneurship support policies and proper regional policies is considered.     

State restructuring,urban competitiveness policies and technopole building in Finland: a critical view on the glocal state thesis

This article examines processes of state restructuring and technopole formation in Finland and in the Helsinki region and takes a critical stand towards the glocal state thesis. The relationship between the nation state and the capital region cities is analysed by focusing on the implications of recent national technology, regional and economic policy measures on the Helsinki region cities and on their responses to national policies. The characteristics of new urban competitiveness policies of the Helsinki region cities are scrutinized with particular attention to the efforts of constructing technopoles as new technology-based agglomerations of research and business activities. The article concludes that the glocal state thesis is inaccurate to describe the Finnish situation as it provides a picture of the nation state that is monolithic and too rigid. In some respects, the developments in Finland have moved in an almost opposite direction.     

European Spatial Planning Between Competitiveness and Territorial Cohesion: Shadows of Neo-liberalism

This paper analyses the use of the concept of territorial cohesion in policy documents produced by the European Union. It is an idea celebrated in community documents, such as cohesion reports, the Territorial Agenda of the European Union and the Green Paper on Territorial Cohesion; after more than a decade of political debate, the concept is about to gain a legitimate institutional role, after being included in the Lisbon Treaty, and is among the competences that the EU shares with other member states. At first, territorial cohesion seems to oppose the logics of neo-liberalism by reinscribing welfare problems and policies in spatial terms. However, using the analytical framework of cultural critics, and intending cohesion to be a discourse carried on by a community of European scholars and policymakers, the research will discuss the conceptual relationship between competitiveness and territorial cohesion in European policies and narratives.     

The role of path-dependence in the resilience of EU regions

The paper studies the role of path-dependence in the resilience of EU regions. Particularly, employing a nonparametric analysis, the paper demonstrates that historical adjustments of EU regions materialized by productivity improvements, primarily in the manufacturing sector and incidentally in the sectors of construction, financial and non-market services, during the period 1995–2008 secured high(er) levels of regional resilience during the economic crisis period 2008–2013. Such a finding provides implications not only for theory but also for policy. Policies aiming at boosting regional productivity and competitiveness, which through a positive regional performance of high growth rates is concealed, a well-structured and robust production restructuring, might affect regional resilience in a way that shields regional economies not only from current imbalances but also from any future downturns.     

Exchange Rate Policy and Economic Growth after the Financial Crisis in Central and Eastern Europe

In a paper on the effects of the global financial crisis in Central and Eastern Europe (CEE), a European Union economist reacts to a companion paper (Åslund, 2001) published in the same issue of Eurasian Geography and Economics on the influence of exchange rate policies on the region's recovery. The author argues that post-crisis corrections in current account deficits in CEE countries do not in themselves signal a return to steady economic growth. Disagreeing with Åslund over the role of loose monetary policy in fostering the region's economic problems, he outlines a number of competitiveness problems that remain to be addressed in the 10 new EU member states of CEE, along with improvements in framework conditions supporting future macroeconomic growth.     

THE NEW INTERNATIONAL MIGRATION IN ASIA

International migration has a long history in Asia but in recent years it has acquired an unprecedented scale and diversity and is a significant influence on the economic, social and demographic development of all Asian nations. International migration is now an established structural feature of the region although many nations still dismiss it as a temporary, passing phenomenon. Asian nations are developing international migration policies but much of this has not been informed by high quality research relating to the causes and effects of migration. The present paper examines each of the major types of international migration influencing contemporary Asia, reviews major developments within them and puts forward relevant policy and research challenges associated with each type of movement. Issues examined include south–north migration, migration and development, the role of diaspora, international labour migration, the feminization of migration, student migration and the increasing role of governments in influencing movement.     

IS SOCIAL CAPITAL USEFUL FOR EXPLAINING ECONOMIC DEVELOPMENT IN POLISH REGIONS?

The concept of social capital is widely perceived as a promising tool for explaining differences in economic development between countries and regions. According to this theory, weak links (bridging social capital) and social trust in an area favour its better access to other forms of capital, that is, economic and human capital. However, strong links (bonding social capital) may stifle creativity and entrepreneurship. Since the vast majority of research on the impact of social capital on economic development focuses on highly developed Western European countries, it seems particularly interesting to evaluate the usefulness of this approach when applied to post‐communist countries with their different experiences. The objective of this article is to identify the spatial variation of different forms of social capital in regions of Poland and then to test a hypothesis on the impact of this capital on regional economic development. The results demonstrate that despite the existing differences between regions there are no significant relationships between levels of social capital and economic development. This may be explained either by low social capital levels or by the overall degree of Polish economic development.     

Parents and policy under New Labour: a case study of the United Kingdom's new deal for lone parents

Within the context of neo-liberal economic policy, and triggered by the looming demographic crisis of an ageing society, a cornerstone of the policies aimed at parents of the previous New Labour administrations in the UK ‘encouraged’ parents to take up paid work or to make themselves ‘work-ready’ to provide the skills to compete in a globalised labour market. Underpinned by a belief that most citizens should be in a position to participate in the paid labour market, government rhetoric actively perpetuated a normative code of economic participation in a political climate that appeared to increasingly marginalise and denigrate the work of social reproduction. Notions of good parenting and, in particular, good mothering were variously tied to (re)employment, financial independence and offering a productive role model to children. ‘Good parenting’ was supported by a host of policies which aimed to enable parents to take financial responsibility for their families, ensuring their children did not grow up in poverty. In this paper, I consider the impact on parents and children of one of the key policies aimed at parents to come out of the UK in the last decade: ‘The New Deal for Lone Parents’. In doing so this article will highlight the role that economic and fiscal concerns have had in shaping the direction of policies aimed at parents in the UK. Drawing on empirical work which sought to explore the views of parents and their children of welfare reform, it will also argue that policy-makers must engage with children when developing policies aimed at parents.     

后冷战时期马来西亚对美政策评析

后冷战时期,马来西亚与美国展开一连串激烈交锋,两国关系一度非常紧张。马来西亚对美采取强硬政策的原因,包括冷战后国际政治格局变化,美国东南亚政策的改变,以及金融危机后马来西亚的政治和经济安全面临的严重威胁等。但马美经贸关系继续发展,美国还跃升为马来西亚最大的出口市场和外资来源,这与马来西亚成功的外交谋略不无关系。对美政策有效地捍卫了马来西亚的政治和经济利益,提高了马来西亚的国际地位,基本体现了马来西亚当时的国家利益,充分显示了小国外交的智慧。     

Firm Performance,Innovation Modes and Territorial Embeddedness

This paper seeks to identify different innovation modes and their territorial embeddedness, relating them to firms’ innovative and economic performance. We also analyse the relationship between the different innovation modes and the economic impact of the crisis on firms’ performance. These relationships are tested by regression and latent class models for the Portuguese population of firms, using a sample of 397 firms classified according to technological intensity, size and region. Our results show three different innovation modes: a DUI (Doing, Using and Interacting) mode, an STI (Science, Technology and Innovation) mode and a TEI (Territorial Embeddedness Innovation) mode in which territory plays a key role. These innovative modes are related in different ways to firms’ economic and innovative performance and also have marked distinctions in terms of resilience to the economic crisis. These findings lead to a reflection on regional innovation policy in the European context.     

Economic Policy and Women’s Informal Work in South Africa

This article examines the gender dimensions of the growth in informal and flexible work in South Africa and the government’s policy response to this. It outlines the growth in informal and flexible work practices and, as illustrative examples, analyses how trade and industrial policies and labour market policies are impacting on the growth of informal and flexible work. It is argued that the South African government’s trade and industrial policies are shifting the economy onto a path of capital intensification. Allied to this, firms are undergoing a process of extensive restructuring. These developments are further promoting the growth of flexibilization and informalization, and thereby disadvantaging women. The article demonstrates that whilst the government offers a vast package of support measures to big business, its policy is largely irrelevant to the survivalist segment of small business, where most women in the informal economy are to be found. The picture for labour policy is more diverse. Aspects of the labour legislation are promoting the growth of a dual labour market, whilst there seems to be some tightening up of practices aimed at bypassing aspects of the protection provided to workers.     

Global policy paradigms,gender equality and everyday lives in Beijing,Hong Kong,Seoul and Taipei

Focusing on the interface between gender equality, the labour market, and everyday lives in four East Asian societies – China, Hong Kong, South Korea and Taiwan – this article seeks to articulate the spatial expression and multi-scalarity of global governance and policy paradigms. It will demonstrate that whilst regions, places and people are influenced by global processes and paradigms, these move and embed in different ways across spaces, time and scales. In this context, the article seeks to develop a more nuanced appreciation of ‘the social lives’ of global policy models, engaging with the role of ideas and institutions and the interactions of transnational, national and local dynamics in the shaping of gender equality policies and everyday experiences. Drawing on qualitative data collected in Beijing, Hong Kong, Seoul and Taipei the article draws out the perceptions of individuals from different policy, sectoral, social and cultural settings of gender equality. It highlights the tensions and disjunctures between general principles and particular situations, and in embedding gender equality policies into the social imaginaries and everyday lives of women and men. It emphasizes the importance of recognizing the role of place and power relations in shaping localized responses to and experiences of gender justice.     

What Kind of Entrepreneurship Drives Regional Development in European Non-core Regions? A Literature Review on Empirical Entrepreneurship Research

Regional policies across Europe aim at stimulating regional development in non-core regions through fostering entrepreneurship. However, the policies applied in non-core regions and the concepts of entrepreneurship these policies are based on differ. Therefore, the goal of this review is to identify different understandings of entrepreneurship and their role for regional development processes in European non-core regions. To this end, empirical studies investigating entrepreneurship in European non-core regions from 1999 to 2011 were analysed. The results of the analysis are presented along three drivers and outcomes of entrepreneurship identified inductively from the literature: innovation, social capital and institutional change. We made out seven different types of entrepreneurship in European non-core regions. These seven types of entrepreneurship comprise particular mechanisms through which they stimulate regional development. Further research should study the interplay between these different mechanisms of regional development in non-core regions which may induce a more territorial approach to understand entrepreneurship in non-core regions across Europe.     

The meaning of place in the anthracite region of Northeastern Pennsylvania

The Anthracite Heritage Project was founded to uncover one of the most tragic incidents in US labour history, the Lattimer Massacre. Initially, this work complemented the existing commemorative practices found in the anthracite coal region of Northeastern Pennsylvania. The various communities tend to remember a coal heritage that includes the story of migration, labour and survival. Recently, a new immigrant population has entered the region, and they are facing many of the prejudices and xenophobic fears that the European immigrants faced several generations ago. The history of the Lattimer Massacre, as well as other archaeological work that focuses explicitly on issues of immigration, has enabled the Anthracite Heritage Project to use and expand heritage to confront the racist tendencies found in the established community. The use of bridging social capital is one strategy being used to help better integrate the new population in this economically depressed area of Northern Appalachia.     

Unfolding the relationship between resilient firms and the region

ABSTRACT

This research explores organizational resilience in four manufacturing firms in four different regions of Norway. While regional resilience has gained attention in research, there have been few studies with a micro-level focus, investigating firms and their distinctive features of resilience. We chose a qualitative multiple-case study approach and employed a critical incident technique to study resilience in selected firms that had experienced external shocks and shifts in regard to changing markets, globalization and advances in technology. Each, however, had managed to continually develop resilience capacity over time. Our framework considered three dimensions of organizational resilience: the cognitive, the behavioural and the contextual. We address how resilience is sustained over time, the evolutionary nature of organizational resilience in firms and how resilient firms relate to the region. We found that all three dimensions of resilience capacity were evident in each firm, but appeared as a complex and unique blend. Furthermore, each dimension was supported by regional ties and affiliations. The findings suggest that organizational resilience is a dynamic capability conditioned by firm–region interactions, which are cultural, social and economic. Regional resilience is built through the contribution of the firm to the economic and social systems of the region.     

The International Monetary Fund and its New Economics

This article focuses on a key element of the IMF's agenda for change: the repackaging of its economics of crisis around inflation targeting. It examines how this new policy regime redefines the political economy of the IMF's policy advice, and contextualizes it by focusing on Eastern Europe, the region worst affected by the global financial crisis which began in 2007. The article compares the conditionalities designed under the new and old policy regimes and argues that the mainstreaming of inflation targeting reproduces the IMF's function within a neoliberal political economy. It shows how, depending on the role of the IMF in the policy process, the models that inform policy are employed differently. During ‘normal’ times, models engender a contractionary bias that favours speculative capital. When acting as ‘lender of last resort’, the IMF retains the traditional emphasis on fiscal contractions, paying only lip service to its new economics of crisis while further ignoring crucial questions of macroeconomic policy coordination or the destabilizing potential of short‐term capital inflows.