Next Article in Journal
The Effects of Extreme Heat Adaptation Strategies under Different Climate Change Mitigation Scenarios in Seoul, Korea
Previous Article in Journal
Smallholders’ Preferences for Different Contract Farming Models: Empirical Evidence from Sustainable Certified Coffee Production in Vietnam
Previous Article in Special Issue
Agglomeration Economies in Small Cities and Business: The Impact of the Great Recession in Aragón (Spain)
Article Menu

Export Article

Open AccessArticle

The Role of Embeddedness on Regional Economic Resilience: Evidence from the UK

City-REDI, Department of Strategy and International Business, Birmingham Business School, University of Birmingham, Ash House, Edgbaston, Birmingham B15 2TT, UK
Author to whom correspondence should be addressed.
Sustainability 2019, 11(14), 3800;
Received: 5 June 2019 / Revised: 4 July 2019 / Accepted: 9 July 2019 / Published: 11 July 2019
(This article belongs to the Special Issue Regions and Economic Resilience)
PDF [636 KB, uploaded 11 July 2019]


This paper examines the role of local industrial embeddedness on economic resilience in UK Nomenclature of Territorial Units for Statistics (NUTS2) regions. The 2008 financial crisis had a profound effect on the socioeconomic conditions of different places. UK regions had significantly divergent experiences based on their capacity to avoid or overcome the shock. Research has shed light on some potential drivers behind this differential resilience performance such as skills, but others, such as the degree of a production system’s local embeddedness, are largely underexplored. This paper aims at filling this gap. We hypothesise that the combination of positive external economies of complexity and negative lock-in effects lead to an inverted U-shaped relationship between embeddedness and resilience. We use a novel dataset and method for approximating embeddedness and fixed-effects panel regressions for the period 2000–2010 to control for regional heterogeneity. The results support our hypothesis and suggest that embeddedness has a positive effect on resilience up to a point, after which more embeddedness leads to negative resilience effects. The results call for greater attention on the relationships among local industries, particularly with regards to the recent development of local industrial strategies. View Full-Text
Keywords: economic resilience; input–output; embeddedness economic resilience; input–output; embeddedness

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

Share & Cite This Article

MDPI and ACS Style

Kitsos, A.; Carrascal-Incera, A.; Ortega-Argilés, R. The Role of Embeddedness on Regional Economic Resilience: Evidence from the UK. Sustainability 2019, 11, 3800.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top