Advanced Search
MyIDEAS: Login to save this article or follow this journal

The impact of regional location factors on job creation, job destruction and employment growth in manufacturing

Contents:

Author Info

  • Raimund Krumm

    ()

  • Harald Strotmann

    ()

Abstract

Regions are exposed to intensive competition to provide the most attractive location conditions for firms and their employees. Therefore, regional employment development depends to a decisive degree on the attractiveness of regional location factors. Based upon the creation of establishment-level panel data from Official Statistics for manufacturing in Baden-Wuerttemberg, Germany, from 1980 to 1999 this paper gives an empirical analysis of the impact of regional location conditions on regional manufacturing employment growth. In particular, the paper examines whether the impact of regional location conditions on regional net employment growth is driven by the underlying gross components job creation and/or job destruction. The results indicate that lower regional costs of production and a better regional endowment with skilled labour and R&D promote manufacturing employment growth. Thereby, lower costs of production as measured by a lower wage level stimulate employment growth by decreasing gross job destruction, while a better human capital endowment and a higher regional R&D intensity enhance employment growth by higher rates of gross job creation. Regions characterised by a smaller average firm size in manufacturing experienced higher manufacturing employment growth both by higher rates of job creation and lower rates of job destruction. On the other hand population density stimulates job creation as well as job destruction which lead to a zero effect on the scale of net employment change—indicating a compensation effect “behind the scenes”. Otherwise, the analysis reveals the tendency for regional location factors to influence either only gross job creation or only gross job destruction, but seldom both sides at the same time. Copyright Springer-Verlag 2013

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/10.1007/s10037-012-0069-y
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Springer in its journal Jahrbuch für Regionalwissenschaft.

Volume (Year): 33 (2013)
Issue (Month): 1 (February)
Pages: 23-48

as in new window
Handle: RePEc:spr:jahrfr:v:33:y:2013:i:1:p:23-48

Contact details of provider:
Web page: http://www.springer.com/economics/journal/10037

Order Information:
Web: http://link.springer.de/orders.htm

Related research

Keywords: Regional development; Employment growth; Job creation; Job destruction; Job flows; Location factors; Manufacturing; R11; R3; O18;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Fuchs, Michaela, 2009. "The determinants of local employment dynamics in Western Germany," IAB Discussion Paper 200918, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Friso Vor & Henri Groot, 2010. "Agglomeration externalities and localized employment growth: the performance of industrial sites in Amsterdam," The Annals of Regional Science, Springer, Springer, vol. 44(3), pages 409-431, June.
  3. Arellano, M, 1987. "Computing Robust Standard Errors for Within-Groups Estimators," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(4), pages 431-34, November.
  4. Stephen Redding, 2009. "The empirics of new economic geography," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 25499, London School of Economics and Political Science, LSE Library.
  5. Böckerman, Petri & Hämäläinen, Kari & Maliranta, Mika, 2002. "Sources of job and worker flows: Evidence from a panel of regions," MPRA Paper 4887, University Library of Munich, Germany.
  6. Michael Fritsch & Oliver Falck & Udo Brixy, 2004. "The Effect of Industry, Region and Time on New Business Survival - A Multi-Dimensional Analysis," Papers on Entrepreneurship, Growth and Public Policy, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group 2004-31, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  7. Valter Di Giacinto & Giacinto Micucci, 2007. "The producer service sector in Italy: Long-term growth and its local determinants," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area 643, Bank of Italy, Economic Research and International Relations Area.
  8. Todd M. Gabe & Kathleen P. Bell, 2004. "Tradeoffs between Local Taxes and Government Spending as Determinants of Business Location," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 44(1), pages 21-41.
  9. Joachim Wagner, 2007. "Job-Motor Mittelstand?Arbeitsplatzdynamik und Betriebsgröße in der westdeutschen Industrie," Working Paper Series in Economics 47, University of Lüneburg, Institute of Economics.
  10. Andrea Gauselmann & Philipp Marek & J. P. Angenendt, 2011. "MNE’s Regional Location Choice - A Comparative Perspective on East Germany, the Czech Republic and Poland," IWH Discussion Papers, Halle Institute for Economic Research 8, Halle Institute for Economic Research.
  11. Rita Almeida, 2007. "Local Economic Structure and Growth," Spatial Economic Analysis, Taylor & Francis Journals, Taylor & Francis Journals, vol. 2(1), pages 65-90.
  12. Brixy, Udo & Grotz, Reinhold, 2006. "Regional patterns and determinants of new firm formation and survival in western Germany," IAB Discussion Paper 200605, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  13. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, American Economic Association, vol. 74(3), pages 433-44, June.
  14. Gerke J. Hoogstra & Jouke van Dijk, 2004. "Explaining Firm Employment Growth: Does Location Matter?," Small Business Economics, Springer, Springer, vol. 22(3_4), pages 179-192, 04.
  15. Cainelli, Giulio & Lupi, Claudio, 2008. "Does Spatial Proximity Matter? Micro-evidence from Italy," Economics & Statistics Discussion Papers esdp08042, University of Molise, Dept. EGSeI.
  16. Daniel Heuermann & Benedikt Halfdanarson & Jens Suedekum, 2010. "Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations," Urban Studies, Urban Studies Journal Limited, Urban Studies Journal Limited, vol. 47(4), pages 749-767, April.
  17. Cletus C. Coughlin & Eran Segev, 1997. "Location determinants of new foreign-owned manufacturing plants," Working Papers, Federal Reserve Bank of St. Louis 1997-018, Federal Reserve Bank of St. Louis.
  18. Devereux, Michael P. & Griffith, Rachel, 1998. "Taxes and the location of production: evidence from a panel of US multinationals," Journal of Public Economics, Elsevier, Elsevier, vol. 68(3), pages 335-367, June.
  19. Hymel, Kent, 2009. "Does traffic congestion reduce employment growth?," Journal of Urban Economics, Elsevier, vol. 65(2), pages 127-135, March.
  20. FUKAO Kyoji & IKEUCHI Kenta & KIM YoungGak & KWON Hyeog Ug, 2011. "Do More Productive Firms Locate New Factories in More Productive Locations? An empirical analysis based on panel data from Japan's Census of Manufactures," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 11068, Research Institute of Economy, Trade and Industry (RIETI).
  21. Joshua Drucker, 2009. "Trends in Regional Industrial Concentration in the United States," Working Papers 09-06, Center for Economic Studies, U.S. Census Bureau.
  22. Annette Illy & Michael Schwartz & Christoph Hornych & Martin T.W. Rosenfeld, 2011. "Local Economic Structure And Sectoral Employment Growth In German Cities," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 102(5), pages 582-593, December.
  23. Harald Strotmann, 2007. "Entrepreneurial Survival," Small Business Economics, Springer, Springer, vol. 28(1), pages 87-104, January.
  24. Michaela Fuchs & Udo Brixy, 2011. "How important are plant and regional characteristics for employment dynamics? Plant-level evidence for Germany," ERSA conference papers ersa10p243, European Regional Science Association.
  25. Stefan Arent & Johannes Steinbrecher, 2010. "Bedeutung regionaler Standortfaktoren für das Wachstum am Beispiel Sachsen-Anhalts," ifo Dresden berichtet, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 17(05), pages 21-27, October.
  26. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, Elsevier, vol. 22(1), pages 3-42, July.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Nadine LEVRATTO & Denis CARRÉ, 2013. "La Croissance Des Établissements Industriels : Une Question De Localisation," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 93-120.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:spr:jahrfr:v:33:y:2013:i:1:p:23-48. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.