Regionale Wachstumseffekte der GRW-Förderung?: Eine räumlich-ökonometrische Analyse auf Basis deutscher Arbeitsmarktregionen
[Regional Growth Effects of Private Sector Investment Grants in Germany?: A spatial econometric analysis for German labour markets]
AbstractThis paper provides an analysis of the impact of the German “Joint Task for the Improve-ment of Regional Economic Structures” (GRW) on labour productivity growth of 225 German labour market regions for the period 1994 to 2006. The empirical regression approach builds on a “Barro-type” growth equation, where a special focus is given to the policy instrument as additional right hand side regressor. The results show that for different model specifications the direct effect of the regional policy instrument on labour productivity growth remains statistically significant and positive for almost two thirds of the supported labour markets. In order to check for the robustness of the results we also augment the standard regression approach to the field of spatial econometrics. Here the results for the Spatial Lag model show that we observe a strong positive spatial spillover effect for productivity growth among neighbouring regions. If we additionally include further spatial lags of the right hand side regressors in the growth equation, the estimated coefficients for the resulting Spatial Durbin and Spatial Durbin Error model indicate that there is a negative spillover effect from the GRW policy on neighbouring regions. This effect remains stable, if we add further spatial lags of other explanatory variables. The indirect distorting effect of the GRW programme yields to the result that only for about 45% of supported regions a positive overall effect was found (with an initial income level up to 73% of the non-funded West German labour markets).
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 22643.
Date of creation: May 2010
Date of revision:
Investment Grants; Regional Growth; Germany; Spatial Durbin Model;
Other versions of this item:
- Björn Alecke & Timo Mitze & Gerhard Untiedt, 2011. "Regionale Wachstumseffekte der GRW-Förderung? - Eine räumlich-ökonometrische Analyse auf Basis deutscher Arbeitsmarktregionen," RWI Materialien, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, pages 46, 03.
- Bjoern Alecke & Timo Mitze & Gerhard Untiedt, 2010. "Regionale Wachstumseffekte der GRW-Förderung? Eine räumlich-ökonometrische Analyse auf Basis deutscher Arbeitsmarktregionen," Working Papers 5-2010, GEFRA - Gesellschaft fuer Finanz- und Regionalanalysen.
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-22 (All new papers)
- NEP-GER-2010-05-22 (German Papers)
- NEP-URE-2010-05-22 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Vassar College Department of Economics Working Paper Series
61, Vassar College Department of Economics.
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