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Globalization and local profiles of economic growth and industrial change

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  • Wolfgang Dauth
  • Jens Suedekum

Abstract

The aggregate German economy is characterized by a secular decline of manufacturing and a rise of modern service industries. This trend of structural change is not uniform across space, however. Some regions exhibit it at an accelerated pace, while other regions reinforced their manufacturing specializations. We first categorize all German regions into one of three groups, with ‘pro-trend’, ‘anti-trend’ or ‘featureless’ growth and provide a detailed comparison of these groups. Afterwards we propose an explanation why a particular region ended up in one of those groups: We argue that the profiles of regional growth and change are systematically related to the initial sizes, and the import and export exposures of the local manufacturing sectors.

Suggested Citation

  • Wolfgang Dauth & Jens Suedekum, 2016. "Globalization and local profiles of economic growth and industrial change," Journal of Economic Geography, Oxford University Press, vol. 16(5), pages 1007-1034.
  • Handle: RePEc:oup:jecgeo:v:16:y:2016:i:5:p:1007-1034.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbv028
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    13. Yazgan, Sekip & Marangoz, Cumali & Bulut, Emre, 2022. "The turning point of regional deindustrialization in the U.S.: Evidence from panel and time-series data," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 294-304.
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    15. Peter Mayerhofer & Julia Bachtrögler-Unger & Klaus Nowotny & Gerhard Streicher, 2021. "Ökonomische Wirkung von Interventionen der Europäischen Struktur- und Investitionsfonds in Österreich seit 1995," WIFO Monatsberichte (monthly reports), WIFO, vol. 94(2), pages 139-150, February.
    16. Guan, Chenghua & Huang, Jinyuan & Jiang, Ruyue & Xu, Wanting, 2023. "The impact of pilot free trade zone on service industry structure upgrading," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 472-491.
    17. Feld, Lars P. & Schmidt, Christoph M. & Schnabel, Isabel & Truger, Achim & Wieland, Volker, 2019. "Den Strukturwandel meistern. Jahresgutachten 2019/20 [Dealing with Structural Change. Annual Report 2019/20]," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 201920.
    18. Saudi Arabian Monetary Authority, 2018. "Macroeconomic and distributional effects of globalisation," BIS Papers chapters, in: Bank for International Settlements (ed.), Globalisation and deglobalisation, volume 100, pages 311-319, Bank for International Settlements.
    19. Nishi, Hiroshi, 2022. "Industrial sources and unevenness of regional employment resilience in Japan," MPRA Paper 113530, University Library of Munich, Germany.
    20. Lisa Simon, 2019. "Microeconometric Analyses on Determinants of Individual Labour Market Outcomes," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 83.
    21. Giulia Urso & Marco Modica & Alessandra Faggian, 2019. "Resilience and Sectoral Composition Change of Italian Inner Areas in Response to the Great Recession," Sustainability, MDPI, vol. 11(9), pages 1-15, May.

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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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