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


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  • Lorenz Blume

    (Department of Economics, University of Kassel)

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    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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    Bibliographic Info

    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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