Can foundational economy save regions in crisis?
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Can foundational economy save regions in crisis? / Martynovich, Mikhail; Hansen, Teis; Lundquist, Karl-Johan.
In: Journal of Economic Geography, Vol. 23, No. 3, 2023, p. 577–599.Research output: Contribution to journal › Journal article › peer-review
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TY - JOUR
T1 - Can foundational economy save regions in crisis?
AU - Martynovich, Mikhail
AU - Hansen, Teis
AU - Lundquist, Karl-Johan
PY - 2023
Y1 - 2023
N2 - We perform, to our best knowledge, the first systematic mapping of the foundational economy (FE) at the sub-national level by looking at the FE employment in Swedish regions between 2007 and 2016. We show that the FE itself not only suffered less than traded activities from employment decline during the Great Recession of 2007-2009 but was also a domain of substantial job creation in the post-crisis recovery. At the same time, regions with higher dependence on foundational employment were hit harder during the crisis in terms of overall labour market performance. We demonstrate that it is specific compositions of foundational and traded activities in the regional employment mix that relate differently to regional employment growth in times of crisis and recovery. Jointly, these findings allow us to contribute to the literatures on the FE and regional resilience.
AB - We perform, to our best knowledge, the first systematic mapping of the foundational economy (FE) at the sub-national level by looking at the FE employment in Swedish regions between 2007 and 2016. We show that the FE itself not only suffered less than traded activities from employment decline during the Great Recession of 2007-2009 but was also a domain of substantial job creation in the post-crisis recovery. At the same time, regions with higher dependence on foundational employment were hit harder during the crisis in terms of overall labour market performance. We demonstrate that it is specific compositions of foundational and traded activities in the regional employment mix that relate differently to regional employment growth in times of crisis and recovery. Jointly, these findings allow us to contribute to the literatures on the FE and regional resilience.
KW - Foundational economy
KW - employment
KW - crisis
KW - recovery
KW - resilience
KW - RESILIENCE
KW - EMPLOYMENT
KW - RELATEDNESS
KW - VARIETY
KW - GROWTH
U2 - 10.1093/jeg/lbac027
DO - 10.1093/jeg/lbac027
M3 - Journal article
VL - 23
SP - 577
EP - 599
JO - Journal of Economic Geography
JF - Journal of Economic Geography
SN - 1468-2702
IS - 3
ER -
ID: 322953789