9:45 AM - 10:00 AM
[084] Exploring the role of industrial structure on the capacity to recover from economic shock
Keywords:Regional economic resilience, Diversified industrial structure, OFDI
This paper examines the link between the industrial structure and regional economic recovery, exploring the factors behind how South Korea overcame the 2008-2009 financial crisis in a relatively short period of time. Regional economic resilience was measured based on employment changes from 2006 to 2019 and the panel logistic regression model empirical analysis was performed with 16 regions across Korea. Our main result corroborates that regions tend to be resilient in a less spcecialised industry network, signalling that diversity fared better in coping with the employment shocks. It is also found that OFDI (Outward Foreign Direct Investment) has negative impact on the resilience of a region. This analysis contributes to the literature in that the network-type structure, rather than a highly-specialised one, might promote buffer its local economies to effect of unpredictable shocks.