The geography of the economic crisis in Europe: national macroeconomic conditions, regional structural factors and short-term economic performance

This article explores the linkages between pre-2008 crisis national macroeconomic conditions, regional resistance factors and depth of the crisis in the regions of the EU27. The results suggest that only a limited set of macroeconomic factors shape the regional reaction to the crisis. A healthy current account surplus is associated with stronger economic performance during the post-2008 recession. Conversely, high public debt countries are more successful in sheltering their regional economies in the short run. When looking at regionallevel resistance, human capital is the single most important positive factor. Conversely, research and development-intensive regions are more exposed to negative shocks.