<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</abstract>

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.

Industrial Structure and a Tradeoff Between Productivity and Economic Resilience

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"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...

Industrial Structure and a Tradeoff Between Productivity and Economic Resilience

Published Online: Jan 27, 2023

Page range: 224 - 240

DOI: https://doi.org/10.2478/sbe-2022-0057

Keywords
economic structure, regional science, resilience, co-occurrence, Panarchy

© 2022 Shade T Shutters et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Industrial Structure and a Tradeoff Between Productivity and Economic Resilience

Published Online: Jan 27, 2023

Page range: 224 - 240

DOI: https://doi.org/10.2478/sbe-2022-0057

Keywordseconomic structure, regional science, resilience, co-occurrence, Panarchy

© 2022 Shade T Shutters et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
economic structure, regional science, resilience, co-occurrence, Panarchy