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Spillover Effects of Spatial Growth Poles - a Reconciliation of Conflicting Policy Targets?

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  • Kubis, Alexander
  • Titze, Mirko
  • Ragnitz, Joachim

Abstract

Regional economic policy faces the challenge of two competing policy goals - reducing regional economic disparities vs. promoting economic growth. The allocation of public funds has to weigh these goals particularly under the restriction of scarce financial resources. If, however, some region turns out to be a regional growth pole with positive spillovers to its disadvantaged periphery, regional policies could be designed to reconcile the conflicting targets. In this case, peripheral regions could indirectly participate in the economic development of their growing cores. We start our investigation by defining and identifying such growth poles among German regions on the NUTS 3 administrative level based on spatial and sectoral effects. Using cluster analysis, we determine significant characteristics for the general identification of growth poles. Patterns in the sectoral change are identified by means of the change in the employment. Finally, we analyze whether and to what extent these growth poles exert spatial spillover effects on neighbouring regions and thus mitigate contradictory interests in regional public policy. For this purpose, we apply a Spatial-Cross-Regressive-Model (SCR-Model) including the change in the secondary sector which allows to consider functional economic relations on the administrative level chosen (NUTS 3).

Suggested Citation

  • Kubis, Alexander & Titze, Mirko & Ragnitz, Joachim, 2007. "Spillover Effects of Spatial Growth Poles - a Reconciliation of Conflicting Policy Targets?," IWH Discussion Papers 8/2007, Halle Institute for Economic Research (IWH).
  • Handle: RePEc:zbw:iwhdps:iwh-8-07
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    References listed on IDEAS

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    1. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    2. Hans-Friedrich Eckey & Reinhold Kosfeld & Matthias Türck, 2007. "Regionale Entwicklung mit und ohne räumliche Spillover-Effekte," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 27(1), pages 23-42, February.
    3. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    4. Alexander Kubis, 2005. "Sectoral Movement as an Incentive for Interregional Migration," ERSA conference papers ersa05p66, European Regional Science Association.
    5. Hans-Friedrich-Eckey & Reinhold Kosfeld & Matthias Türck, 2005. "Regionale Produktionsfunktionen mit Spillover-Effekten für Deutschland – Empirischer Befund und wirtschaftspolitische Implikationen," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 125(2), pages 239-267.
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    Cited by:

    1. Kosfeld, Reinhold & Dreger, Christian, 2019. "Towards an East German wage curve - NUTS boundaries, labour market regions and unemployment spillovers," Regional Science and Urban Economics, Elsevier, vol. 76(C), pages 115-124.
    2. Azari, Mehdi & Kim, Hakkon & Kim, Jun Yeup & Ryu, Doojin, 2016. "The effect of agglomeration on the productivity of urban manufacturing sectors in a leading emerging economy," Economic Systems, Elsevier, vol. 40(3), pages 422-432.

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    More about this item

    Keywords

    size and spatial distributions of regional economic activity; cross-sectional models; spatial models; treatment effect models; regional; urban; and rural analyses;
    All these keywords.

    JEL classification:

    • 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
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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