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Can foundational economy save regions in crisis?

Martynovich, Mikhail LU orcid ; Hansen, Teis and Lundquist, Karl-Johan LU (2023) In Journal of Economic Geography 23(3). p.577-599
Abstract
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... (More)
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. (Less)
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author
; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
foundational economy, employment, crisis, recovery, resilience
in
Journal of Economic Geography
volume
23
issue
3
pages
577 - 599
publisher
Oxford University Press
external identifiers
  • scopus:85147777043
ISSN
1468-2710
DOI
10.1093/jeg/lbac027
language
English
LU publication?
yes
id
1dda01a6-6e78-49a6-8035-97f980a3e778
date added to LUP
2023-05-04 13:28:37
date last changed
2024-01-19 21:48:28
@article{1dda01a6-6e78-49a6-8035-97f980a3e778,
  abstract     = {{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.}},
  author       = {{Martynovich, Mikhail and Hansen, Teis and Lundquist, Karl-Johan}},
  issn         = {{1468-2710}},
  keywords     = {{foundational economy; employment; crisis; recovery; resilience}},
  language     = {{eng}},
  number       = {{3}},
  pages        = {{577--599}},
  publisher    = {{Oxford University Press}},
  series       = {{Journal of Economic Geography}},
  title        = {{Can foundational economy save regions in crisis?}},
  url          = {{http://dx.doi.org/10.1093/jeg/lbac027}},
  doi          = {{10.1093/jeg/lbac027}},
  volume       = {{23}},
  year         = {{2023}},
}