Localized Knowledge Spillovers and Regional Employment Growth: Evidence from Germany
AbstractThe present paper aims at explaining the regional deconcentration of economic activities in (West) Germany during the past two decades. Using an idea-based endogenous growth model that encloses several innovative sectors, and in which economic activity is subject to externalities of agglomeration, we test the hypothesis that human-capital intensive activities in (technical) manufacturing R&D, manufacturing management, and producer services continue to concentrate on agglomerations because of localized knowledge spillovers, while manufacturing production which does not benefit directly from knowledge spillovers deconcentrates because of agglomeration diseconomies. The empirical results from cross-section regressions for 75 West-German regions are in line with the hypothesis on spatial deconcentration of manufacturing production due to agglomeration diseconomies, but clearly reject the hypothesis on ongoing spatial concentration of high-skilled workers driven by knowledge spillovers.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 938.
Date of creation: Jul 1999
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Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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- Sauer, Thomas & Stoetzer, Matthias-Wolfgang & Gerlach, Andrea, 2007. "Forms and regional distribution of knowledge transfer by German universities," Jena Contributions to Economic Research 2007,3, University of Applied Sciences Jena, Department of Business Administration.
- Jens Suedekum, 2006.
"Concentration and Specialization Trends in Germany since Re-unification,"
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- Suedekum, Jens, 2004. "Concentration and Specialisation Trends in Germany since Reunification," HWWA Discussion Papers 285, Hamburg Institute of International Economics (HWWA).
- Niebuhr, Annekatrin, 2000. "Räumliche Wachstumszusammenhänge - empirische Befunde für Deutschland," HWWA Discussion Papers 84, Hamburg Institute of International Economics (HWWA).
- Christiane Krieger-Boden, 2000. "Globalization, Integration and Regional Specialization," Kiel Working Papers 1009, Kiel Institute for the World Economy.
- Gerlach, Andrea & Sauer, Thomas & Stoetzer, Matthias-Wolfgang, 2005. "Formen und regionale Verteilung des Wissenstransfers von Hochschulen: Eine repräsentative Fallstudie für Jena," Jena Contributions to Economic Research 2005,1, University of Applied Sciences Jena, Department of Business Administration.
- Alejandro Diaz-Bautista, 2005. "Convergence and Economic Growth considering Human Capital and R&D Spillovers Convergencia y Crecimiento Economico en Mexico considerando al Capital Humano y derrames en Investigacion y Desarrollo," Urban/Regional 0506012, EconWPA.
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