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Urban Growth in Germany – The Impact of Localization and Urbanization Economies

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  • Illy, Annette
  • Hornych, Christoph
  • Schwartz, Michael
  • Rosenfeld, Martin T. W.

Abstract

This study examines the impact of localization and urbanization economies as well as the impact of city size on urban growth in German cities from 2003 to 2007. Although, from a theoretical perspective, agglomeration economies are supposed to have positive impacts on regional growth, prior empirical studies do not show consistent results. Especially little is known about agglomeration economies in Germany, where interregional support policy and the characteristics of the federal system are further determinants of urban growth. The results of the econometric analysis show a Ushaped relationship between specialization and urban growth, which particularly holds for manufacturing industries. We do not find evidence for the impact of Jacobs-externalities; however, city size shows a positive (but decreasing) effect on urban growth.

Suggested Citation

  • Illy, Annette & Hornych, Christoph & Schwartz, Michael & Rosenfeld, Martin T. W., 2009. "Urban Growth in Germany – The Impact of Localization and Urbanization Economies," IWH Discussion Papers 19/2009, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:iwh-19-09
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    References listed on IDEAS

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    Cited by:

    1. Behr, Andreas & Schiwy, Christoph & Hong, Lucy, 2022. "Impact of Agglomeration Economies on Regional Performance in Germany," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 52(1), May.

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    More about this item

    Keywords

    Agglomeration; Localization economies; Urbanization economies; Urban Growth; Specialization; Diversification; Agglomeration; Lokalisationseffekte; Urbanisierungseffekte; Städtewachstum; Spezialisierung; Diversifikation;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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