IDEAS home Printed from https://ideas.repec.org/p/mar/magkse/202005.html
   My bibliography  Save this paper

The Effect of Inter-municipal Cooperation on Local Business Development in German Municipalities

Author

Listed:
  • Eva Wolfschuetz

    (University of Kassel)

Abstract

Does inter-municipal cooperation (IMC) enhance municipal economic performance? This study employs marginal structural models to address selection into treatment and time-dependent confounding to estimate the effectiveness of IMC in the field of local business development. I use data on municipalities in four West-German states, Lower Saxony, Hesse, Rhineland Palatinate, and Bavaria during the years 2008-2015. I find that, over time, IMC has a positive effect on local economic performance and local business development resources are spent more productively in cooperating municipalities.

Suggested Citation

  • Eva Wolfschuetz, 2020. "The Effect of Inter-municipal Cooperation on Local Business Development in German Municipalities," MAGKS Papers on Economics 202005, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:202005
    as

    Download full text from publisher

    File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/paper_2020/05-2020_wolfschuetz.pdf
    File Function: First 202005
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Frederic Blaeschke, 2014. "What drives small municipalities to cooperate? Evidence from Hessian municipalities," MAGKS Papers on Economics 201414, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Quentin Frère & Matthieu Leprince & Sonia Paty, 2014. "The Impact of Intermunicipal Cooperation on Local Public Spending," Urban Studies, Urban Studies Journal Limited, vol. 51(8), pages 1741-1760, June.
    3. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    4. Germa Bel & Anton Costas, 2006. "Do Public Sector Reforms Get Rusty? Local Privatization in Spain," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 9(1), pages 1-24.
    5. Ivo Bischoff & Simon Melch & Eva Wolfschuetz, 2019. "Does tax competition drive cooperation in local economic development policies? Evidence on inter-local business parks in Germany," MAGKS Papers on Economics 201906, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Germà Bel & Mildred E. Warner, 2016. "Factors explaining inter-municipal cooperation in service delivery: a meta-regression analysis," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 19(2), pages 91-115, April.
    7. Massimiliano Ferraresi & Giuseppe Migali & Leonzio Rizzo, 2018. "Does intermunicipal cooperation promote efficiency gains? Evidence from Italian municipal unions," Journal of Regional Science, Wiley Blackwell, vol. 58(5), pages 1017-1044, November.
    8. Ivo Bischoff & Eva Wolfschütz, 2021. "Inter-municipal cooperation in administrative tasks – the role of population dynamics and elections," Local Government Studies, Taylor & Francis Journals, vol. 47(4), pages 568-592, July.
    9. Hyung Jun Park & Richard C. Feiock, 2006. "Institutional Collective Action, Social Capital and Regional Development Partnership," International Review of Public Administration, Taylor & Francis Journals, vol. 11(2), pages 57-69, January.
    10. Hiroki Baba & Yasushi Asami, 2020. "Municipal population size and the benefits of inter-municipal cooperation: panel data evidence from Japan," Local Government Studies, Taylor & Francis Journals, vol. 46(3), pages 371-393, May.
    11. Christopher V. Hawkins, 2017. "Political incentives and transaction costs of collaboration among US cities for economic development," Local Government Studies, Taylor & Francis Journals, vol. 43(5), pages 752-775, September.
    12. Kosuke Imai & Marc Ratkovic, 2015. "Robust Estimation of Inverse Probability Weights for Marginal Structural Models," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 110(511), pages 1013-1023, September.
    13. E. Dijkgraaf & R. H. J. M. Gradus, 2013. "Cost advantage cooperations larger than private waste collectors," Applied Economics Letters, Taylor & Francis Journals, vol. 20(7), pages 702-705, May.
    14. Germà Bel & Mildred E. Warner, 2016. "Factors explaining inter-municipal cooperation in service delivery: a meta-regression analysis," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 19(2), pages 91-115, June.
    15. Matthew Blackwell, 2013. "A Framework for Dynamic Causal Inference in Political Science," American Journal of Political Science, John Wiley & Sons, vol. 57(2), pages 504-520, April.
    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


    Cited by:

    1. Lionel WILNER, 2020. "How do citizens perceive centralization reforms? Evidence from the merger of French regions," Working Papers 2020-20, Center for Research in Economics and Statistics, revised 07 Jun 2021.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Banaszewska, Monika & Bischoff, Ivo & Bode, Eva & Chodakowska, Aneta, 2022. "Does inter-municipal cooperation help improve local economic performance? – Evidence from Poland," Regional Science and Urban Economics, Elsevier, vol. 92(C).
    2. Banaszewska, Monika & Bischoff, Ivo & Bode, Eva & Chodakowska, Aneta, 2022. "Does inter-municipal cooperation help improve local economic performance? – Evidence from Poland," Regional Science and Urban Economics, Elsevier, vol. 92(C).
    3. Michal Struk & Eduard Bakoš, 2021. "Long-Term Benefits of Intermunicipal Cooperation for Small Municipalities in Waste Management Provision," IJERPH, MDPI, vol. 18(4), pages 1-16, February.
    4. Allers, Maarten & van Ommeren, Bernard & Geertsema, Bieuwe, 2015. "Does intermunicipal cooperation create inefficiency? A comparison of interest rates paid by intermunicipal organizations, amalgamated municipalities and not recently amalgamated municipalities," Research Report 15003-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    5. Ivo Bischoff & Simon Melch & Eva Wolfschuetz, 2019. "Does tax competition drive cooperation in local economic development policies? Evidence on inter-local business parks in Germany," MAGKS Papers on Economics 201906, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Germà Bel & Thomas Elston, 2022. ""When the Time is Right: Testing for Dynamic Effects in Collaborative Performance"," IREA Working Papers 202212, University of Barcelona, Research Institute of Applied Economics, revised Jul 2022.
    7. Marco Di Cataldo & Licia Ferranna & Margherita Gerolimetto & Stefano Magrini, 2023. "Splitting Up or Dancing Together? Local Institutional Structure and the Performance of Urban Areas," Economic Geography, Taylor & Francis Journals, vol. 99(1), pages 81-110, January.
    8. Germà Bel & Marianna Sebo, 2018. "“Does inter-municipal cooperation really reduce delivery costs? An empirical evaluation of the role of scale economies, transaction costs, and governance arrangements”," IREA Working Papers 201816, University of Barcelona, Research Institute of Applied Economics, revised Jul 2018.
    9. Ivo Bischoff & Eva Wolfschuetz, 2017. "The Emergence of Inter-Municipal Cooperation – A Hazard Model Approach," MAGKS Papers on Economics 201744, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    10. Ivo Bischoff & Eva Wolfschütz, 2021. "Inter-municipal cooperation in administrative tasks – the role of population dynamics and elections," Local Government Studies, Taylor & Francis Journals, vol. 47(4), pages 568-592, July.
    11. Giuseppe Gori & Patrizia Lattarulo & Francesco Porcelli & Leonzio Rizzo & Riccardo Secomandi, 2023. "Does inter-municipal cooperation increase efficiency? Evidence from Italy," Working papers 111, Società Italiana di Economia Pubblica.
    12. Massimiliano Ferraresi & Gianluca Gucciardi & Leonzio Rizzo, 2017. "Does purchase centralization reduce public expenditure? Evidence from the Italian healthcare system," Working papers 66, Società Italiana di Economia Pubblica.
    13. Blesse Sebastian & Rösel Felix, 2017. "Was bringen kommunale Gebietsreformen?: Kausale Evidenz zu Hoffnungen, Risiken und alternativen Instrumenten," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 18(4), pages 307-324, November.
    14. Sedmihradská Lucie, 2018. "Inter-Municipal Cooperation in the Czech Republic: A Public Finance Perspective," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 11(2), pages 153-170, December.
    15. Katarína Melichová & Lukáš Varecha, 2020. "Endogenous Political, Institutional, Cultural, and Geographic Determinants of Intermunicipal Cooperation—Evidence from Slovakia," Sustainability, MDPI, vol. 12(2), pages 1-25, January.
    16. Dietz, Saskia & Richter, Magnus & Souren, Rainer, 2017. "Gebührenmaßstäbe als Einflussfaktoren auf die Höhe der Hausmüllgebühren: Systematik und varianzanalytische Untersuchung," Ilmenauer Schriften zur Betriebswirtschaftslehre, Technische Universität Ilmenau, Institut für Betriebswirtschaftslehre, volume 1, number 12017.
    17. Luca, Davide & Modrego, Felix, 2020. "Stronger together? Assessing the causal effect of inter-municipal cooperation on the efficiency of small Italian municipalities," LSE Research Online Documents on Economics 108193, London School of Economics and Political Science, LSE Library.
    18. Liang-Cheng Zhang & Andrew C. Worthington, 2018. "Explaining Estimated Economies of Scale and Scope in Higher Education: A Meta-Regression Analysis," Research in Higher Education, Springer;Association for Institutional Research, vol. 59(2), pages 156-173, March.
    19. Germà Bel & Mildred E. Warner, 2016. "Factors explaining inter-municipal cooperation in service delivery: a meta-regression analysis," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 19(2), pages 91-115, April.
    20. Clémence Tricaud, 2021. "Better Alone? Evidence on the Costs of Intermunicipal Cooperation," Working Papers hal-03380333, HAL.

    More about this item

    Keywords

    Inter-municipal cooperation; economic development; marginal structural models; Germany;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mar:magkse:202005. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bernd Hayo (email available below). General contact details of provider: https://edirc.repec.org/data/vamarde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.