Economic resilience of metropolitan,old industrial,and rural regions in two subsequent recessionary shocks

ABSTRACT

In this paper, we focus on the question of how particular types of regions react to economic shocks. Drawing on a case study of Czech microregions, we aim to determine if the old industrial regions differ significantly from other types of regions (metropolitan, urban, rural) in (post)crisis economic development. Two aspects of regional resilience (measured by unemployment growth) were considered: recession and recovery. We focused on the comparison of two subsequent recessionary shocks: the 2008–2010 global recession and the 2012–2013 austerity crisis. Metropolitan regions showed relatively stable economic development. Old industrial regions were more resilient than expected. Rural regions exhibited highly diverse reactions: lower resistance was characteristic for regions specialized (mostly) in automotive and some labour-intensive industries. The first wave of recession increased unemployment mostly in (rural) regions dependent on export-oriented manufacturing, the second wave especially hit larger cities with metropolitan functions. Regions that experienced a sharp unemployment increase in the first recession were generally more resistant in the second wave. All types of regions were internally highly diverse in their reactions to economic crises, which points to the importance of micro-regional variations of economic resilience, the performance of individual local firms and subsidiaries, and extra-regional factors of regional development.     

Economic Geography as Dissenting Institutionalism: The Embeddedness, Evolution and Differentiation of Regions

This paper endorses recent pleas for an ‘institutional turn’ within economic geography. In particular, it reveals and connects the coherence and distinctiveness of dissenting institutional economics as a way of thinking for economic geography. Economic geographers have recognized this tradition but its continuity and compass is not fully appreciated. To provide such an appreciation, this paper argues that the paradigmatic distinctiveness of dissenting institutionalism rests especially on its recognition that real world economies are embedded, have histories or evolve, and are different. The discussion is based around these three cornerstone principles of embeddedness, evolution and difference. For the future, greater attention to the region as an institution, albeit a complex one, along with greater attention to the synthesis of multi‐dimensional processes that are normally analyzes as separate conceptual categories, is encouraged.