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Quality of government and regional resilience in the European Union. Evidence from the Great Recession
Author(s) -
Ezcurra Roberto,
Rios Vicente
Publication year - 2019
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/pirs.12417
Subject(s) - recession , context (archaeology) , resilience (materials science) , european union , quality (philosophy) , government (linguistics) , great recession , corporate governance , psychological resilience , economics , economic geography , development economics , geography , economic policy , macroeconomics , labour economics , finance , psychology , philosophy , linguistics , physics , archaeology , epistemology , psychotherapist , thermodynamics
This paper examines the relationship between quality of government and regional resilience in the European Union during the Great Recession. The results show that the quality of government is an important factor when shaping the regional reaction to the crisis. Our estimates reveal that higher quality of government is associated with greater regional resilience over the Great Recession. This is partly due to the role played in this context by spatial spillovers induced by the quality of government in neighbouring regions. The observed link between governance and regional resilience is robust to the inclusion in the analysis of different explanatory variables that may affect both government quality and regional resilience. Likewise, our findings do not depend on the specific dimension of governance considered, the estimation method or the econometric specification employed to capture the nature of spatial spillovers.