Asian Journal of Innovation and Policy

Asian Society for Innovation and Policy (아시아기술혁신학회)
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Mitigating the Shocks: Exploring the Role of Economic Structure in the Regional Employment Resilience

  • Kiseok Song (Department of Regional Development, Chonnam National University) ;
  • Ilwon Seo (Department of Economics, Chonnam National University)
  • Received : 2023.12.04
  • Accepted : 2023.12.25
  • Published : 2023.12.31
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Abstract

This study investigates the resilient structural characteristics of a region by assessing the impact of the financial crisis. Utilizing panel data at the prefecture level for metropolitan cities across pre-shock (2006-2008), shock (2009), and post-shock (2010-2019) periods, we calculated an employment resilience index by combining the resistance and recovery indices. The panel logit regression measures the influences of the region's industrial structure and external economic factors in response to the global financial crisis. The results revealed that the diversity index of industries contributed to the post-shock recovery bounce-back. Additionally, the presence of large firms and industrial clusters within the region positively contributed to economic resilience. The specialization and the proportion of manufacturing industries showed negative effects, suggesting that regions overly reliant on manufacturing-centered specialization might be vulnerable to external shocks. Furthermore, excessive capital outflows for market expansion were found to have a detrimental impact on regional economic recovery.

Keywords

Acknowledgement

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2022S1A5A8052970).

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