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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    Description

    This quiz explores the varying regional responses in Italy to the 2008 Great Recession, focusing on the concept of regional resilience and the role of related variety in economic adaptation. You'll learn about how diversified industrial domains can enhance local labor markets' ability to withstand economic shocks. Dive into spatial econometric techniques used to analyze resilience across different regions in Italy.

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