Regional economic impact of Covid-19: The role of sectoral structure and trade linkages

Arbeitspapier

The paper provides an ex-post analysis of the determinants of within-country regional heterogeneity of the labour market impact of COVID-19. By focussing on the first wave of the pandemic in the four largest euro area economies, it finds that the propagation of the economic impact across regions cannot be explained by the spread of infections only. Instead, a region's economic structure is a significant driver of the observed heterogeneity. Moreover, our results suggest that a region's trade relations, both within and across countries, represent a relevant indirect channel through which COVID-19 related disruptions affect regional economic activity. In this regard, the analysis depicts vulnerabilities arising from potential disruptions of the highly integrated EU supply chains.

Object Details

• ISBN: 978-92-899-4528-8
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 2528

Classification and Topics

• Classification: Wirtschaft ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes ; Empirical Studies of Trade ; Particular Labor Markets: General ; General Regional Economics: Econometric and Input-Output Models; Other Models
• Subject: COVID-19 pandemic ; short-time work ; input-output linkages ; sectoral exposure ; regional differences

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Meinen, Philipp ; Serafini, Roberta ; Papagalli, Ottavia
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2021

Further information

• DOI: doi:10.2866/648853
• Handle: http://hdl.handle.net/10419/234082
• Last update: 10.03.2025, 11:43 AM CET