Can industrial diversification help strengthen regional economic resilience?

Abstract

Strengthening economic resilience is the key to stable economic growth in various regions. Previous studies have paid more attention to the level and evolution trend of economic resilience, and seldom Dissected the reasons for differences in regional economic resilience. This paper takes 243 cities in China as the research object and explains the reasons for the differences in regional economic resilience from the perspective of industrial diversification. The results show that industrial diversification helps to improve the level of regional economic resilience. Compared with related diversification, unrelevant diversification has a more significant effect on economic resilience. The region’s own endowment conditions will also affect the effect of industrial diversification on economic resilience. Diversified industries can better promote regional economic resilience in more economically developed cities. The development of industrial diversification also depends on the support of external factors such as finance, technological innovation, and human capital. Therefore, increasing the investment in these factors will also help to positively adjust the role of industrial diversification in promoting economic resilience. Our research helps to understand the reasons for the formation of regional economic resilience, and the research results provide a scientific basis for optimizing sustainable development policies.

Can urban e-commerce transformation improve economic resilience? a quasi-natural experiment from China

“…Specifically, cities that are too dependent on a certain industry or have too homogeneous industrial structures find it difficult to disperse risks when they are hit by strong shocks; then, more losses can easily happen. Only a diversified industrial structure can exhibit more sustainable resilience, consistent with Chen and Wang and He et al [47,48].…”

“…The other is the indicator system method, which systematically captures the evolving characteristics of economic resilience using various variables highly correlated with economic fluctuation [43]. Second, studies have shown that factors such as financial development [44], population agglomeration [45], regional innovation [46], industrial structure [47], government intervention [48], and digital transformation [49] can affect urban economic resilience.…”

The coupling coordination relationship between sports industry agglomeration and economic resilience in the Yangtze River Delta region

“…For instance, Martin et al selected an employment change indicator to measure economic resilience in the UK after four major recessions in the past 40 years [22]. He et al also used the employment indicator to measure the economic resilience index of 230 cities in the shock-resistant and recovery-adjustment periods by stages [23]. The multidimensional indicator method involves constructing a multidimensional indicator system.…”

A comprehensive analysis of the societal impact of industrial diversity on sustainable economic development

“…The debate on whether industrial diversity or industrial specialization should contribute more to regional economic growth is always popular in literature. Previous literature has shown that industrial diversity can help grow regional development not only in developed countries but also in developing countries (Chen, 2019; Cuberes and Ramsawak, 2020; Felix, 2012; Fusillo et al , 2022; Gnangnon, 2022; He et al , 2022; Markakkaran and Sridharan, 2022; Wang et al , 2020). Frenken et al (2007) provided an overview of the related theory on variety and regional economic development.…”