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Which German Länder compete successfully in attracting investors? - Sound budgetary policies pay off

Author

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  • Norbert Berthold
  • Holger Fricke

Abstract

The German Länder themselves can influence to a considerable extent how dynamically the economy and employment will grow in particular regions and how stable the security systems are. In the competition for mobile factors of production - skilled workers and investments - the Länder have had differing success. Prof. Norbert Berthold and Holger Fricke, University of Würzburg, document this in a current study, whose results are summarised here. Success in the areas "employment", "income" and "security" is examined and converted into a success index that expresses how attractive the Länder are in site competition. Then the authors examine what factors are responsible for the respective successes or failures. A good ranking depends largely on financial resources. The study demonstrates the great influence and benefits of sound budgetary policies.

Suggested Citation

  • Norbert Berthold & Holger Fricke, 2005. "Which German Länder compete successfully in attracting investors? - Sound budgetary policies pay off," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(16), pages 07-12, August.
    • Handle: RePEc:ces:ifosdt:v:58:y:2005:i:16:p:07-12
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    Citations

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    Cited by:

    1. Heinz Schmalholz, 2005. "Steuerungsmöglichkeiten von Innovationspolitik in den Bundesländern : das Beispiel Sachsen (Innovationspolitik in Sachsen)," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(05), pages 18-26, October.
    2. Heinz Schmalholz, 2005. "Steuerungsmöglichkeiten von Innovationspolitik in den Bundesländern : das Beispiel Sachsen (Innovationspolitik in Sachsen)," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(05), pages .18-26, October.

    More about this item

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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