Testing and explaining economic resilience with an application to Italian regions

Di Caro, Paolo (2014): Testing and explaining economic resilience with an application to Italian regions.

Abstract

This paper studies regional economic resilience by exploiting the properties of the nonlinear smooth-transition autoregressive model. A testing procedure to distinguish between engineering and ecological resilience is presented, and a measurement of economic resilience is provided. Regional differences in economic resilience are explained by the presence of spatial interactions and by adopting a set of determinants like economic diversity, export performance, financial constraints, and human and social capital. An empirical investigation is conducted for analysing regional employment evolution in Italy from 1992 to 2012. Some concluding suggestions propose possible future areas of research.

• Item Type: MPRA Paper
• Language: English
• Keywords: regional resilience, hysteresis, smooth transition regression
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C34 - Truncated and Censored Models ; Switching Regression Models; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics

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