Resilience and economic structure: The case of the Chilean regions during the Asian crises and the Great Recession of 2008

Abstract

AbstractThis paper analyses the effects of the sectoral structure on the economic resilience of Chilean regions during the shocks of the 1998 Asian and 2008 financial crises by employing cycle dissection, phase‐differentiated spatially extended shift‐share analysis, and regional analysis indices. Regions with more diversified structures exhibited better performance during the crises. Certain service sectors moderated the impacts of the crises in the resistance phases, and in turn, were drivers during the recovery phases. Remarkably, agriculture slowed the recovery of the southern regions. Some of these results were induced by the high demographic and economic concentration in the metropolitan region of Santiago.