Regional Resilience in Italy Post-Recession

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Questions and Answers

What is the main focus of this study?

  • The importance of spatial econometric techniques in regional economics.
  • The impact of related variety on the economic performance of firms.
  • The effects of the 2008 Great Recession on regional economies.
  • The relationship between related variety and regional resilience. (correct)

What geographical unit of analysis is used in the study?

  • Cities
  • Local labor markets (LLMs) (correct)
  • Regions
  • Countries

What specific economic shock does the study analyze?

  • The 2008 Global Financial Crisis (correct)
  • The 2010 European Sovereign Debt Crisis
  • The 1997 Asian Financial Crisis
  • The 2020 COVID-19 Pandemic

What is the primary method used to analyze the relationship between related variety and resilience in the study?

<p>Spatial econometric techniques (B)</p> Signup and view all the answers

What is the primary finding of the study regarding the relationship between related variety and resilience in the short term (2012-2013)?

<p>Related variety had a negligible effect on short-term resilience. (C)</p> Signup and view all the answers

What is the primary finding of the study regarding the relationship between related variety and resilience in the longer term (2010-2013)?

<p>LLMs with higher related variety exhibited significantly higher resilience. (C)</p> Signup and view all the answers

What JEL classification codes are used for this study?

<p>B52, C21, R11 (A)</p> Signup and view all the answers

How does related variety contribute to regional resilience?

<p>It provides a broader range of economic activities, making the region more adaptable to shocks. (A)</p> Signup and view all the answers

What is the main focus of the text?

<p>The relationship between industrial relatedness and regional resilience (C)</p> Signup and view all the answers

What is the primary reason for the increased interest in regional resilience?

<p>The economic downturn of 2008 affecting European regions (A)</p> Signup and view all the answers

What is one of the key factors influencing regional resilience?

<p>The region’s existing industrial structure and related diversification (D)</p> Signup and view all the answers

What is the core idea of related variety, as discussed in the text?

<p>The presence of diverse industries that leverage shared competencies and cognitive proximity (B)</p> Signup and view all the answers

What is a potential argument for related variety being a crucial component of regional resilience?

<p>It reduces the risk of economic vulnerability by diversifying production (B)</p> Signup and view all the answers

What is one of the main criticisms of the concept of related variety as discussed in the text?

<p>It is difficult to measure and quantify the impact of related variety (B)</p> Signup and view all the answers

What is the common conclusion of empirical studies on related variety?

<p>Related variety has a positive effect on the economic performance of firms and regions (C)</p> Signup and view all the answers

What is the main reason for the limited analysis on the impact of related variety on regional resilience?

<p>The focus of previous research on the relationship between related variety and economic growth (B)</p> Signup and view all the answers

Which of the following is NOT considered a threatening event that resilience is measured against?

<p>Technological advancement (A)</p> Signup and view all the answers

What is a common method used to assess resilience to natural disasters?

<p>Indices (C)</p> Signup and view all the answers

What does the 'ratio between the drop in regional employment or output and the corresponding drop in the country as a whole' measure?

<p>Regional resilience to recessions (A)</p> Signup and view all the answers

Which method is NOT mentioned in the text as a way to identify variables for composite indicators of resilience?

<p>Expert opinion surveys (C)</p> Signup and view all the answers

What is the main focus of the research stream that explores the relationship between related variety and regional resilience?

<p>The role of industrial diversification in regional resilience (A)</p> Signup and view all the answers

What is the concept of 'related variety' primarily concerned with?

<p>The degree of interconnectedness between different industries in a region (B)</p> Signup and view all the answers

What is the primary difference between simple and composite indicators of resilience?

<p>Simple indicators measure a single aspect of resilience, while composite indicators measure multiple aspects. (B)</p> Signup and view all the answers

Which of the following statements best describes the relationship between related variety and regional resilience as presented in the text?

<p>Related variety is a necessary but not sufficient condition for regional resilience. (A)</p> Signup and view all the answers

What is the primary objective of the study?

<p>To investigate the relationship between related variety and regional resilience in Italy. (D)</p> Signup and view all the answers

What does the variable 'El' represent in the resilience equation?

<p>Employment in local labor market 'l' in year 't'. (C)</p> Signup and view all the answers

According to the equation, what would a negative value for 'ResilienceT−t' indicate?

<p>The region showed a non-resilient economic behavior compared to the national average. (B)</p> Signup and view all the answers

What does the term 'related variety' refer to?

<p>The diversity of industries within a local labor market. (B)</p> Signup and view all the answers

What are the two time periods used to evaluate economic resilience in the study?

<p>2010-2013 and 2012-2013 (B)</p> Signup and view all the answers

What is the purpose of using the Lagravinese (2015) index?

<p>To account for asymmetric regional behaviors and longer time periods. (A)</p> Signup and view all the answers

What is the main purpose of studying economic resilience?

<p>To identify regions that are most vulnerable to economic shocks. (C)</p> Signup and view all the answers

What does the author suggest about the relationship between related variety and regional resilience?

<p>The relationship between related variety and regional resilience is complex and requires further study. (D)</p> Signup and view all the answers

What determines the ability of regions to develop new industrial specializations after the 2008 Great Recession?

<p>Industrial relatedness (D)</p> Signup and view all the answers

Which measure is used to quantify industrial relatedness?

<p>Los index (A)</p> Signup and view all the answers

How does related variety contribute to regional resilience in knowledge-intensive sectors?

<p>By enhancing technology transfer and skill reallocation (B)</p> Signup and view all the answers

What is the primary assumption of related variety?

<p>Complementarities across different sectors are essential (D)</p> Signup and view all the answers

What role does cognitive proximity play in the diffusion of shared competencies?

<p>It facilitates idea and technology transfer (B)</p> Signup and view all the answers

What aspect of local systems does related variety strengthen as a response to external shocks?

<p>Capacity for rapid adjustment (D)</p> Signup and view all the answers

Which is NOT a benefit of having a diversified productive structure in a local system?

<p>Enhanced stability of a single industry (D)</p> Signup and view all the answers

According to the study, industrial relatedness positively affects regional resilience in which types of sectors?

<p>Knowledge-intensive sectors (B)</p> Signup and view all the answers

In what year did the Italian GDP first reach its pre-crisis level after the 2008 Great Recession?

<p>2010 (C)</p> Signup and view all the answers

What periods were characterized by a negative annual GDP growth for Italy?

<p>2011-2012 (A)</p> Signup and view all the answers

According to Martin (2012), what does a resilience index value greater than one indicate?

<p>High sensitivity to shocks (D)</p> Signup and view all the answers

During the 1-year period from 2012-2013, what percentage of Italian LLMs recorded a positive employment growth rate?

<p>16% (B)</p> Signup and view all the answers

What was the negative employment growth rate recorded for Italy during the analysis periods?

<p>-2% (D)</p> Signup and view all the answers

How many LLMs experienced zero growth in employment during the 3-year period from 2010-2013?

<p>2 (A)</p> Signup and view all the answers

What is required for the resilience index proposed by Martin (2012) to function properly?

<p>Negative performance in all regions and the country (B)</p> Signup and view all the answers

Which period marked the beginning of GDP growth after the recession in Italy?

<p>2012 (B)</p> Signup and view all the answers

Flashcards

Regional Resilience

A region's capacity to positively react to external shocks or disruptions.

Great Recession

The severe global economic downturn that began in 2008, impacting Europe variably.

Related Diversification

A strategy where a region develops industries that share competencies.

Related Variety

Diverse industries in a region that allow for shared competencies and complementarities.

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Cognitive Proximity

The closeness in knowledge and skills among local actors facilitating collaboration.

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Industrial Structure

The composition and arrangement of industries within a region.

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Empirical Studies

Research methods focused on observing and measuring data in real-world contexts.

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Evolutionary Approach

A perspective that views economic outcomes as a result of historical and contextual factors over time.

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Local Labour Market (LLM)

The job market specific to a local area or region.

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2008 Great Recession

A significant economic downturn that began in 2008.

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Spatial Econometric Techniques

Statistical methods used to analyze spatial data.

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Shock Absorber

A factor that helps mitigate the impact of economic shocks.

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3-Year Resilience Period (2010-2013)

Timeframe used to analyze recovery post-recession.

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1-Year Resilience Period (2012-2013)

Short-term recovery assessment after the recession.

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Resilience

The ability to recover from threatening events like disasters or economic crises.

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Operationalisation

The process of defining and measuring concepts in research.

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Composite Indicators

Aggregated measures derived from multiple variables to assess resilience.

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Economic Shocks

Unexpected events that significantly affect the economy, like recessions.

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Simple Indicators

Basic measures used to evaluate phenomena such as regional resilience.

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Factor Analysis

A statistical method to identify underlying relationships between variables.

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Seemingly Unrelated Regression Equations (SURE)

A statistical analysis model used to test regional resilience differences.

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Economic Resilience

The ability of an economy to recover from shocks or crises.

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Lagravinese Index

An index modified to evaluate economic resilience over time and regions.

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Asymmetric Regional Behaviours

Differences in how regions respond to economic changes.

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Post-Crisis Periods

Timeframes for evaluating economic resilience after crises.

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Resilience Calculation

A formula used to assess if a region is resilient or not.

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LLM (Local Labor Market)

A specific regional market for employment analysis.

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Resilience Indicators

Metrics to determine if a region shows resilient behavior.

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1-year vs. 3-year Evaluation

Different timeframes to measure economic resilience effectiveness.

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Italian GDP Recovery

The Italian GDP began increasing post-2008 recession, reaching pre-crisis levels in 2010.

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2011-2012 Recession

A period of negative GDP growth affecting Italy after the initial recovery.

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Resilience Index

A ratio assessing regional employment change compared to national changes to gauge resilience.

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High Sensitivity Indicator

LLMs with a resilience index above one are highly sensitive to external shocks.

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Low Sensitivity Indicator

LLMs with a resilience index below one show better resilience to external shocks.

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Negative Employment Growth

The Italian economy experienced around -2% employment growth during the analyzed periods.

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Positive Employment Growth

Approx. 16% of Italian LLMs had positive growth in 2012-2013 after negative trends.

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Zero-Growth LLMs

Two out of 686 LLMs showed no employment growth during the 2010-2013 period.

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Industrial relatedness

The average proximity among industries of specialization in a region.

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Technological relatedness

The closeness of technological capabilities among different industries within a region.

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Complementarities

The synergies that arise from shared competencies in different sectors, enabling innovation.

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Study Notes

  • Italian regions experienced varying responses to the 2008 Great Recession
  • Regional resilience is the capacity to adapt to external shocks
  • Related variety, encompassing the diversification of industrial domains with shared competencies, is a key component of regional resilience
  • Related variety positively impacts regional short-term resilience to economic shocks (2010-2013)
  • Related variety shows a negligible role in short-term resilience (2012-2013)
  • Regions with higher related variety demonstrated a greater capacity to adapt to the 2008 economic recession over a three-year period (2010-2013).
  • The study uses spatial econometric techniques to explore the relationship between related variety and regional resilience.
  • The study focused on local labor markets (LLM) across Italy using data from the 2008 recession aftermath.
  • Key concept of related variety emphasizes the presence of diversified industrial domains, fostering shared competencies across industries.

Measuring Regional Resilience

  • Resilience is measured as the ratio of regional employment decline to the decline of the country's employment or output following the 2008 recession.

  • A positive resilience index greater than zero signified greater resilience, while a negative index indicated greater sensitivity to shocks.

  • Spatial Econometric techniques used to model the impact of spatial relationships.

  • The study used three-year (2010–2013) and one-year (2012–2013) periods to evaluate the economic resilience in Italian LLMs, post-recession.

  • Related variety is based on employment data for five-digit economic activity, employing an index developed from employment data at the LLM level for 2001 (related variety 2001).
  • A related variety index calculated to evaluate relatedness considering two-digit economic activities.
  • High related variety index signifies strong related diversification, enabling efficient resource reallocation across industries.

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