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.

KEYWORDS:

• Resilience
• resistance
• recovery
• metropolitan regions
• old industrial regions
• rural regions

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 Adaptability in the long run ‘represents a constructive capacity, or a potential, seeking to make a regional economy (more) resilient. Long-term adaptability therefore is more likely about an ability to change and transform … ’ (Hu & Hassink, 2017, p. 5).

Additional information

Funding

This work was supported by the Czech Science Foundation through a research grant: ‘Paths development in traditional industries in old industrial regions in Czechia: governance, actors, institutions and leadership’ (18-11299S).