Regional Resilience across Europe: On Urbanization and the Initial Impact of the Great Recession

Abstract

Using a novel data set for 207 European regions from 22 different countries, we analyse the relevance of urbanisation for the short-term resilience to a major shock. We take the Great Recession, the economic and financial crisis that started in 2008, as our shock and analyse how the European NUTS 2 regions differ in their short-run resilience in the aftermath to the crisis in terms of unemployment and real GDP per capita. We find that the degree and nature of regional urbanisation is important for resilience. EU regions with a relatively large share of the population in commuting areas are relatively more resilient. In addition, regions with a large output share in medium-high tech industries were also less affected by the crisis.