Centre for Entrepreneurship, SMEs, Regions and Cities
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.
Available from September 07, 2022
In series:OECD Local Economic and Employment Development (LEED) Papersview more titles