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Factors of Successful Local Economic Policies: An Empirical Research of East German Cities

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Author Info
Lorenz Blume () (Department of Economics, University of Kassel)
Abstract

In the period after 1995, successful economic policies in East German cities consisted of a balanced mix of traditional instruments (consulting, real estate management, investing in infrastructure) and modern, competition-oriented activities (citymarketing, modernizing administrative structures, cooperating on a local level and public-private-partnerships). There is certain evidence that differences in local economic policies have an effect on local growth. At the current level of intergovernmental competition among East German municipalities, there are no signs of a ruinous race in subsidies. Discriminating subsidies even have a negative effect on the business climate in cities that have implemented these.

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File URL: http://www.uni-kassel.de/fb7/ivwl/diskussionsbeitraege/workingpaper/papier5103.pdf
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Paper provided by University of Kassel, Institute of Economics in its series Discussion Papers in Economics with number 51/03.

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Length: 25 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:kas:wpaper:2003-51

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Related research
Keywords: local economic policies regional competition East German municipalities;

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Find related papers by JEL classification:
D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
R50 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - General

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  2. Krugman, Paul R, 1996. "Making Sense of the Competitiveness Debate," Oxford Review of Economic Policy, Oxford University Press, vol. 12(3), pages 17-25, Autumn.
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  4. M.S. Deepak & Carol Taylor West & Thomas H. Spreen, 2001. "Local Government Portfolios and Regional Growth: Some Combined Dynamic CGE/Optimal Control Results," Journal of Regional Science, Blackwell Publishing, vol. 41(2), pages 219-254. [Downloadable!] (restricted)
  5. Martin, Philippe & Ottaviano, Gianmarco I P, 2001. "Growth and Agglomeration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 947-68, November.
    Other versions:
  6. Krugman, Paul & Venables, Anthony J., 1993. "Integration, Specialization and Adjustment," CEPR Discussion Papers 886, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Anne Kaag Andersen, 2002. "Are Commuting Areas Relevant for the Delimitation of Administrative Regions in Denmark?," Regional Studies, Taylor and Francis Journals, vol. 36(8), pages 833-844, November. [Downloadable!] (restricted)
  8. Sinn, Hans-Werner, 1997. "The selection principle and market failure in systems competition," Journal of Public Economics, Elsevier, vol. 66(2), pages 247-274, November. [Downloadable!] (restricted)
  9. Katharine L. Bradbury & Yolanda K. Kodrzycki & Robert Tannenwald, 1997. "Effects of state and local public policies on economic development: an overview," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 1-12. [Downloadable!]
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