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Specialization and employment development in Germany: An analysis at the regional level

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  • Kowalewski, Julia

Abstract

This paper analyses the impact of industry specific regional specialization on employment growth in German planning regions between 1998 and 2007. The paper investigates Germany as a whole as well as Western and Eastern Germany separately. By using a shiftshare regression approach the paper provides new findings about the existence of industryspecific localization advantages. The results show that inverse localization advantages play a major role in explaining regional disparities in Germany. This involves a process of deconcentration of economic activity. In addition, differences between Eastern and Western Germany can also be identified.

Suggested Citation

Handle: RePEc:eee:paresc:v:90:y:2011:i:4:p:789-813
DOI: 10.1111/j.1435-5957.2011.00355.x
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JEL classification:

  • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
  • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other

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