Industrial Embeddedness and Regional Economic Resistance in Europe

Figures & data

Figure 1. The evolution of median employment in NUTS-2 regions between 2004 and 2011.

Table 1 Summary Statistics and Definitions

Statistic	Definition	Source	N	Mean	St. Dev.	Min.	Max.
Regional resistance	Regional resistance measure according to Equation 1(1) $Re{s}_{rt}=\log \left[\right(E_{rt}-E_{r2004-7})+min(E_r-E_{r2004-7})+1]$(1)	Eurostat	505	5.53	0.21	3.17	6.09
Local sales embeddedness	Regional sales embeddedness according to Equation 4(4) $Em{b}_{rt}=\sum _{i=1}^{n}Outputshar{e}_{irt}\ast Em{b}_{irt}$(4)	EUREGIO	505	0.12	0.10	0.03	0.79
Local supplies embeddedness	Regional supplies embeddedness according to Equation 4(4) $Em{b}_{rt}=\sum _{i=1}^{n}Outputshar{e}_{irt}\ast Em{b}_{irt}$(4)	EUREGIO	505	0.14	0.03	0.02	0.77
GFCF pc (log)	Gross fixed capital formation per capita	Eurostat	502	8.85	0.79	6.87	11.06
GVA growth	Gross value-added annual growth rate	EUREGIO/WIOD	502	1.29	6.31	-25.31	25.45
Education	% of population with tertiary education	Eurostat	502	24.84	8.40	6.80	49.50
Hightech employment	% of employment in high-tech sectors	Eurostat	502	3.77	1.67	0.90	9.10
Pop. density (log)	Population per square kilometer	Eurostat	502	5.21	1.17	1.19	8.85
Unemployment rate	Number of people unemployed as percentage of the labor force	Eurostat	502	8.79	5.25	2.00	29

Table 2 Matching between Sectors in ARDECO and EUREGIO Databases

Name	ARDECO NACE2 Sectors	EUREGIO Codes
Agriculture, Forestry and Fishing (S1)	A	SS1
Industry, excluding Construction (S2)	B-E	SS2 + SS3 + SS4 + SS5 + SS6 + SS8
Construction (S3)	F	SS9
Wholesale, Retail, Transport, Accommodation & Food Services, Information and Communication (S4)	G-J	SS10 + SS11 + SS12
Financial & Business Services & Non-Market Services (S5)	K-N + O-U	SS13 + SS14 + SS15

Figure 2. Local embeddedness across NUTS-2 regions.

Figure 3. Scatter plots of embeddedness measures.

Table 3 The Effect of Local Sales Embeddedness on Regional Resistance during 2008–11

	Dependent Variable: Resistance to 2008 Crisis
	(1)	(2)
Local sales Embeddedness	3.519** (1.478)
Local Sales Embeddedness squared	-3.124** (1.447)
Local supplies Embeddedness		1.176*** (0.271)
Local supplies Embeddedness squared		-0.912*** (0.303)
Control variables	YES	YES
Year & region FE	YES	YES
Observations	502	502
R^2	0.276	0.353

Source: Eurostat, EUREGIO. Regional resistance is measured as the logarithm of the difference in employment levels between each year of the period 2008–11 and the average 2004–7. Fixed-effects regressions, including region and year fixed effects. Standard errors in parentheses, clustered at the NUTS-2 region level. *p < 0.1 **p < 0.05 ***p < 0.01.

Table 4 The Effect of Local Sales Embeddedness on Regional Resistance during 2008–11 by Different Quantiles

	Dependent Variable: Resistance to 2008 Crisis
	(1)	(2)
0.1 Quantile
Local sales Embeddedness	0.172 (0.158)
Local sales Embeddedness squared	-3.124** (0.190)
Local supplies Embeddedness		0.37** (0.182)
Local supplies Embeddedness squared		-0.301 (0.247)
0.25 Quantile
Local sales Embeddedness	0.203*** (0.124)
Local sales Embeddedness squared	-0.235 (0.147)
Local supplies Embeddedness		0.16 (0.149)
Local supplies Embeddedness squared		-0.179 (0.214)
0.5 Quantile
Local sales Embeddedness	0.168*** (0.122)
Local sales Embeddedness squared	-0.185 (0.137)
Local supplies Embeddedness		0.125 (0.189)
Local supplies Embeddedness squared		-0.15 (0.273)
0.75 Quantile
Local sales Embeddedness	0.274 (0.150)
Local sales Embeddedness squared	-0.28*** (0.171)
Local supplies Embeddedness		0.127 (0.146)
Local supplies Embeddedness squared		-0.172 (0.216)
0.9 Quantile
Local sales Embeddedness	-0.025*** (0.202)
Local sales Embeddedness squared	0.1 (0.221)
Local supplies Embeddedness		0.387*** (0.132)
Local supplies Embeddedness squared		-0.576*** (0.206)
Control variables	YES	YES
Year & region FE	YES	YES
Observations	502	502

Source: Eurostat, EUREGIO, ARDECO. Regional resistance is measured as the logarithm of the difference in employment levels between each year of the period 2008–11 and the average 2004–7. Quantile regressions including region and year fixed effects. Standard errors in parentheses, clustered at the NUTS-2 region level. *p < 0.1 **p < 0.05 ***p < 0.01.

Table 5 Effect of Local Sales Embeddedness on Employment Growth by Sector

	Dependent Variable: Sectoral Resistance to 2008 Crisis
	Industry, Excluding Construction (S2)	Construction (S3)	Wholesale, Retail, Accommodation & IT (S4)	Financial and Business Services (S5)
	Panel A
Sectoral sales Embeddedness	-1.019 (0.747)	1.492*** (0.428)	2.672** (1.342)	-1.571 (1.188)
Sectoral sales Embeddedness squared	1.574** (0.766)	-0.989*** (0.309)	-1.954* (1.062)	1.214 (1.041)
Local sales Embeddedness	2.130*** (0.747)	0.003 (0.896)	-0.420 (1.674)	10.369*** (2.498)
Local sales Embeddedness squared	-1.591** (0.761)	-0.148 (0.862)	0.435 (1.572)	-8.218*** (2.252)
	Panel B
Sectoral supplies Embeddedness	-0.860* (0.505)	0.279 (0.235)	-0.773 (0.606)	0.213 (0.498)
Sectoral supplies Embeddedness squared	1.153** (0.583)	-0.622*** (0.232)	0.708 (0.624)	-0.109 (0.497)
Local supplies Embeddedness	0.744*** (0.262)	0.637** (0.267)	1.038 (0.717)	0.024 (0.717)
Local supplies Embeddedness squared	-0.656** (0.276)	-0.191 (0.296)	-0.884 (0.792)	-0.370 (0.789)
Control variables	YES	YES	YES	YES
Year and region FE	YES	YES	YES	YES
Observations	405	405	405	405

Source: Eurostat, EUREGIO, ARDECO. Sectoral resistance is measured as the logarithm of the difference in sectoral employment levels between each year of the period 2008–11 and the average 2004–7. Fixed effects regressions including region and year fixed effects. Standard errors in parentheses, clustered at the NUTS-2 region level. *p < 0.1 **p < 0.05 ***p < 0.01.