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Overcoming the MAUP: impact of agglomeration economies on regional performance in Germany

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  • Andreas Behr
  • Christoph Schiwy
  • Lucy Hong

Abstract

This study analyses the impact of agglomeration economies on employment growth at the individual firm and regional levels. The analysis is based on a sample of German firms, comprising a total of 134,081. We put forward a Modifiable Areal Unit Problem-free (MAUP-free) approach for the calculation of individual firm-specific agglomeration and local growth measures based on kernel density estimates. This enables us to examine the impact of agglomeration on firm and local growth within a continuous space framework. The econometric analysis demonstrates that the effects of agglomeration economies on firm and local growth are significantly disparate.

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  • Andreas Behr & Christoph Schiwy & Lucy Hong, 2025. "Overcoming the MAUP: impact of agglomeration economies on regional performance in Germany," Applied Economics, Taylor & Francis Journals, vol. 57(40), pages 6244-6257, August.
    • Handle: RePEc:taf:applec:v:57:y:2025:i:40:p:6244-6257
    DOI: 10.1080/00036846.2024.2382933
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