The Resilience of Regions to Economic Shocks

In view of the latest economic developments all over the world, the question of the economic resilience of regions in the broadest sense has arisen. Existing tendencies towards integration and globalization may have positive as well as negative consequences for national, regional and local economies. In times of prosperity, increased openness of the economy can accelerate economic growth. On the other hand, In times of crisis mutual dependence resulting from a more open economy might contribute to its vulnerability and a susceptibility to economic shocks. The latest economic crisis in particular has brought new challenges for national, regional as well as local economies in terms of their ability to recover from economic downturn that may derail them from their growth path. Regions should not only pay attention to developing their competitive advantages, but also to the long-term sustainability of their economic growth and their ability to respond to unexpected shocks. This paper discusses the major factors of regional economic resilience in the context of the increasing integration of the world's economies. Firstly, it provides a brief introduction to the concept of economic resilience and possible ways of measuring It as presented by a variety of experts In economics and regional studies. An analysis of the situation of the Czech regions at NUTS 3 level follows based on GDP and employment data. The sensitivity of regions to economic downturns within the last two economic crises in the Czech Republic is measured in terms of their effect on employment development.