Measuring complexity and economic regional resilience

Abstract

The concept of economic regional resilience has been stemming from ecology many years ago and got both theoretical and empirical attention in recent years. Its popularity is still increasing. In particular, slightly different approaches of regional economic resilience seem to represent different interpretations of regional ability to prosper thought out different obstacles. Starting from definition of resilience, this paper aims at highlighting advantages and disadvantages of engineering, ecological and evolutionary approach towards resilience. This is in order to offer some insights into its measurement within the resilience analysis. In this paper we will describe an empirical application, in which the resilience of the Czech regional labour market at the level NUTS 2 in the period 2000 - 2014 is going to be investigated by use of an algorithm for business cycle detection and method for complexity of time series measurement. For this reason, we employed the Hurst and Lyapunov exponent as metrics of complexity. The results show the existence of a relationship between the Largest Lyapunov Exponent and the size of Index of Regional Sensitivity on Recession.