Assessing the Localization Pattern of German Manufacturing & Service Industries - A Distance Based Approach
AbstractThis paper assesses the agglomeration pattern of four-digit industries in Germany using a rich data set on the population of German firms. To identify geographical agglomeration, we follow the distance based approach of Duranton and Overman (2005) and find that the location pattern of 78% of our industries departs from randomness in the sense that firms exhibit significant geographical localization. In line with previous studies on manufacturing firms in the UK and France, our analysis suggests that especially traditional manufacturing industries exhibit strong localization patterns. Moreover, we find that geographical localization is not restricted to the manufacturing sector but that it plays an equally, or even more important role in service industries.
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Bibliographic InfoPaper provided by Oxford University Centre for Business Taxation in its series Working Papers with number 0913.
Date of creation: 2009
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Geographic concentration; agglomeration;
Find related papers by JEL classification:
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-05 (All new papers)
- NEP-CSE-2009-09-05 (Economics of Strategic Management)
- NEP-EFF-2009-09-05 (Efficiency & Productivity)
- NEP-GEO-2009-09-05 (Economic Geography)
- NEP-URE-2009-09-05 (Urban & Real Estate Economics)
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