The impact of regional location factors on job creation, job destruction and employment growth in manufacturing
Regions are exposed to intensive competition to provide the most attractive location conditions for firms and their employees. Therefore, regional employment development depends to a decisive degree on the attractiveness of regional location factors. Based upon the creation of establishment-level panel data from Official Statistics for manufacturing in Baden-Wuerttemberg, Germany, from 1980 to 1999 this paper gives an empirical analysis of the impact of regional location conditions on regional manufacturing employment growth. In particular, the paper examines whether the impact of regional location conditions on regional net employment growth is driven by the underlying gross components job creation and/or job destruction. The results indicate that lower regional costs of production and a better regional endowment with skilled labour and R&D promote manufacturing employment growth. Thereby, lower costs of production as measured by a lower wage level stimulate employment growth by decreasing gross job destruction, while a better human capital endowment and a higher regional R&D intensity enhance employment growth by higher rates of gross job creation. Regions characterised by a smaller average firm size in manufacturing experienced higher manufacturing employment growth both by higher rates of job creation and lower rates of job destruction. On the other hand population density stimulates job creation as well as job destruction which lead to a zero effect on the scale of net employment change—indicating a compensation effect “behind the scenes”. Otherwise, the analysis reveals the tendency for regional location factors to influence either only gross job creation or only gross job destruction, but seldom both sides at the same time. Copyright Springer-Verlag 2013
Volume (Year): 33 (2013)
Issue (Month): 1 (February)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/journal/10037|
References listed on IDEAS
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.:
- Harald Strotmann, 2007. "Entrepreneurial Survival," Small Business Economics, Springer, vol. 28(1), pages 87-104, January.
- Michael Funke & Annekatrin Niebuhr, 2005. "Regional Geographic Research and Development Spillovers and Economic Growth: Evidence from West Germany," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 143-153.
- Redding, Stephen J., 2009.
"The Empirics of New Economic Geography,"
CEPR Discussion Papers
7307, C.E.P.R. Discussion Papers.
- Stephen Redding, 2009. "The empirics of new economic geography," LSE Research Online Documents on Economics 25499, London School of Economics and Political Science, LSE Library.
- Stephen Redding, 2009. "The Empirics of New Economic Geography," CEP Discussion Papers dp0925, Centre for Economic Performance, LSE.
- Hymel, Kent, 2009. "Does traffic congestion reduce employment growth?," Journal of Urban Economics, Elsevier, vol. 65(2), pages 127-135, March.
- Fritsch, Michael & Brixy, Udo & Falck, Oliver, 2004.
"The effect of industry, region and time on new business survival: A multi-dimensional analysis,"
Passauer Diskussionspapiere, Volkswirtschaftliche Reihe
V-26-04, University of Passau, Faculty of Business and Economics.
- Brixy, Udo & Falck, Oliver & Fritsch, Michael, 2006. "The effect of industry, region, and time on new business survival - A multi-dimensional analysis," Munich Reprints in Economics 20195, University of Munich, Department of Economics.
- Fritsch, Michael & Brixy, Udo & Falck, Oliver, 2004. "The effect of industry, region and time on new business survival: A multi-dimensional analysis," Freiberg Working Papers 2004,04, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
- Michael Fritsch & Oliver Falck & Udo Brixy, 2004. "The Effect of Industry, Region and Time on New Business Survival - A Multi-Dimensional Analysis," Papers on Entrepreneurship, Growth and Public Policy 2004-31, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
- Joachim Wagner, 2007.
"Job-Motor Mittelstand?Arbeitsplatzdynamik und Betriebsgröße in der westdeutschen Industrie,"
Working Paper Series in Economics
47, University of Lüneburg, Institute of Economics.
- Joachim Wagner, 2007. "Jobmotor Mittelstand?: Arbeitsplatzdynamik und Betriebsgröße in der westdeutschen Industrie," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 76(3), pages 76-87.
- Almeida, Rita, 2005.
"Local economic structure and growth,"
Policy Research Working Paper Series
3728, The World Bank.
- Michaela Fuchs, 2011. "The determinants of local employment dynamics in Western Germany," Empirical Economics, Springer, vol. 40(1), pages 177-203, February.
- Daniel Heuermann & Benedikt Halfdanarson & Jens Suedekum, 2010.
"Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations,"
Urban Studies Journal Limited, vol. 47(4), pages 749-767, April.
- Halfdanarson, Benedikt & Heuermann, Daniel F. & Suedekum, Jens, 2008. "Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations," IZA Discussion Papers 3493, Institute for the Study of Labor (IZA).
- Friso Vor & Henri Groot, 2010. "Agglomeration externalities and localized employment growth: the performance of industrial sites in Amsterdam," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(3), pages 409-431, June.
- Petri Böckerman & Kari Hämäläinen & Mika Maliranta, 2004.
"Sources of Job and Worker Flows: Evidence from a Panel of Regions,"
CEIS, vol. 18(1), pages 105-129, 03.
- Böckerman, Petri & Hämäläinen, Kari & Maliranta, Mika, 2002. "Sources of job and worker flows: Evidence from a panel of regions," MPRA Paper 4887, University Library of Munich, Germany.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Todd M. Gabe & Kathleen P. Bell, 2004. "Tradeoffs between Local Taxes and Government Spending as Determinants of Business Location," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 21-41.
- Cletus C. Coughlin & Eran Segev, 1997.
"Location determinants of new foreign-owned manufacturing plants,"
1997-018, Federal Reserve Bank of St. Louis.
- Cletus C. Coughlin & Eran Segev, 2000. "Location Determinants of New Foreign-Owned Manufacturing Plants," Journal of Regional Science, Wiley Blackwell, vol. 40(2), pages 323-351.
- Stefan Arent & Johannes Steinbrecher, 2010. "Bedeutung regionaler Standortfaktoren für das Wachstum am Beispiel Sachsen-Anhalts," ifo Dresden berichtet, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(05), pages 21-27, October.
- Arellano, M, 1987. "Computing Robust Standard Errors for Within-Groups Estimators," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(4), pages 431-434, November.
- Claudio A. Agostini(Georgetown University/Ilades), 2004.
"The Impact of State Corporate Taxes on FDI Location,"
gueconwpa~04-04-10, Georgetown University, Department of Economics.
- Claudio A. Agostini, 2007. "The Impact of State Corporate Taxes on FDI Location," Public Finance Review, SAGE Publishing, vol. 35(3), pages 335-360, May.
- Claudio Agostini & Soraphol Tulayasathien, "undated". "The Impact of State Corporate Taxes on FDI Location," ILADES-Georgetown University Working Papers inv146, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
- Giacinto Micucci & Valter di Giacinto, 2009.
"The Producer Service Sector in Italy: Long-term Growth and its Local Determinants,"
Spatial Economic Analysis,
Taylor & Francis Journals, vol. 4(4), pages 391-425.
- Valter Di Giacinto & Giacinto Micucci, 2007. "The producer service sector in Italy: Long-term growth and its local determinants," Temi di discussione (Economic working papers) 643, Bank of Italy, Economic Research and International Relations Area.
- Gerke J. Hoogstra & Jouke van Dijk, 2004. "Explaining Firm Employment Growth: Does Location Matter?," Small Business Economics, Springer, vol. 22(3_4), pages 179-192, 04.
- Annette Illy & Michael Schwartz & Christoph Hornych & Martin T.W. Rosenfeld, 2011. "Local Economic Structure And Sectoral Employment Growth In German Cities," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 102(5), pages 582-593, December.
- Michaela Fuchs & Udo Brixy, 2011. "How important are plant and regional characteristics for employment dynamics? Plant-level evidence for Germany," ERSA conference papers ersa10p243, European Regional Science Association.
- Devereux, Michael P. & Griffith, Rachel, 1998.
"Taxes and the location of production: evidence from a panel of US multinationals,"
Journal of Public Economics,
Elsevier, vol. 68(3), pages 335-367, June.
- Michael Devereux & Rachel Griffith, 1996. "Taxes and the location of production: evidence from a panel of US multinationals," IFS Working Papers W96/14, Institute for Fiscal Studies.
- Cainelli, Giulio & Lupi, Claudio, 2008. "Does Spatial Proximity Matter? Micro-evidence from Italy," Economics & Statistics Discussion Papers esdp08042, University of Molise, Dept. EGSeI.
- Joshua Drucker, 2009. "Trends in Regional Industrial Concentration in the United States," Working Papers 09-06, Center for Economic Studies, U.S. Census Bureau.
- Brixy, Udo & Grotz, Reinhold, 2006. "Regional patterns and determinants of new firm formation and survival in western Germany," IAB Discussion Paper 200605, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- FUKAO Kyoji & IKEUCHI Kenta & KIM YoungGak & KWON Hyeog Ug, 2011. "Do More Productive Firms Locate New Factories in More Productive Locations? An empirical analysis based on panel data from Japan's Census of Manufactures," Discussion papers 11068, Research Institute of Economy, Trade and Industry (RIETI).
When requesting a correction, please mention this item's handle: RePEc:spr:jahrfr:v:33:y:2013:i:1:p:23-48. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.