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OECD Local Economic and Employment Development (LEED) Papers

The OECD Local Economic and Employment Development (LEED) Programme Papers present innovative ideas and practical examples on how to boost local development and job creation. A wide range of topics are addressed, such as employment and skills; entrepreneurship; the social economy and social innovation; culture; and local capacity building, among others. The series highlights in particular policies to support disadvantaged places and people, such as the low skilled, the unemployed, migrants, youth and seniors.

English, French

Policies for resilient local economies

The COVID-19 pandemic has critically tested OECD economies, with major differences in economic repercussions at the subnational level. The pandemic can be characterised as a combination of shocks to local economies: (i) a recession, (ii) a supply-side shock mirroring a natural disaster, and (iii) the economic and workplace adjustments accelerated by pre-existing megatrends (e.g. automation, green transition). This paper reviews the empirical evidence for effective policies from across the OECD to strengthen local economic resilience through support for people, firms and places. There is a strong need for effective policies in times of recessions, natural disasters and long-term structural change. Policies that strengthen economic resilience strongly overlap with policies for local productivity growth and vice-versa. Moreover, some policies aiming to increase resilience through adding redundancy in production or infrastructure can serve productivity in the long-term.

English

Keywords: economic shocks, regional economic systems, subnational economic policy, COVID-19, industrial change, megatrends, regional economic resilience, recessions
JEL: R11: Urban, Rural, Regional, Real Estate, and Transportation Economics / General Regional Economics / Regional Economic Activity: Growth, Development, Environmental Issues, and Changes; R58: Urban, Rural, Regional, Real Estate, and Transportation Economics / Regional Government Analysis / Regional Development Planning and Policy; R5: Urban, Rural, Regional, Real Estate, and Transportation Economics / Regional Government Analysis; R1: Urban, Rural, Regional, Real Estate, and Transportation Economics / General Regional Economics
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