IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Impact of Regional Supply and Demand Conditions on Job Creation and Destruction

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 locations both on the supply and the demand side. This paper gives an empirical analysis of the impact of regional conditions on regional manufacturing employment growth. Based upon a firm-level panel of manufacturing establishments in Baden-Wuerttemberg, Germany, which can be aggregated to regional panel data for forty-four counties, both the role of supply-side and demand-side conditions and a possible impact of characteristics of the regional industry structure on regional employment growth are analysed for the period from 1980 to 1999. Moreover, the paper examines whether the impact of regional conditions on regional net employment growth is driven by their impact on regional firm-level job creation and/or job destruction. Our results indicate that supply-side conditions seem to be more important for regional employment growth than demand-side factors. While lower costs of production lead to higher regional employment growth due to lower job destruction, a better endowment with human capital and a higher regional R&D intensity stimulate employment growth by higher rates of job creation. Differences in regional firm size structure, export intensity, and other industry structure aspects are affecting job creation, but not job destruction. Moreover, the analysis reveals at least the tendency that regional location factors mainly influence either job creation or job destruction, but seldom both at the same time.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.iaw.edu/RePEc/iaw/pdf/iaw_dp_61.pdf
Download Restriction: no

Paper provided by Institut für Angewandte Wirtschaftsforschung (IAW) in its series IAW Discussion Papers with number 61.

as
in new window

Length: 30 pages
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:iaw:iawdip:61
Contact details of provider: Postal: Ob dem Himmelreich 1, D-72074 Tübingen
Phone: (+49) 7071 98 96 -0
Fax: (+49) 7071 98 96 -99
Web page: http://www.iaw.edu/
Email:


More information through EDIRC

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.:

as in new window
  1. Jens Suedekum & Uwe Blien, 2007. "Stimulating Employment Growth with Higher Wages? A New Approach to Addressing an Old Controversy," Kyklos, Wiley Blackwell, vol. 60(3), pages 441-464, 08.
  2. Steven Poelhekke, 2013. "Human Capital and Employment Growth in German Metropolitan Areas: New Evidence," Regional Studies, Taylor & Francis Journals, vol. 47(2), pages 245-263, February.
  3. Pierluigi, Beatrice & Roma, Moreno, 2008. "Labour cost and employment across euro area countries and sectors," Working Paper Series 0912, European Central Bank.
  4. 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.
  5. Janet Kohlhase & Xiahong Ju, 2007. "Firm location in a polycentric city: the effects of taxes and agglomeration economies on location decisions," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 25(5), pages 671-691, October.
  6. Claudio A. Agostini, 2007. "The Impact of State Corporate Taxes on FDI Location," Public Finance Review, , vol. 35(3), pages 335-360, May.
  7. 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.
  8. 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.
  9. 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.
  10. Hymel, Kent, 2009. "Does traffic congestion reduce employment growth?," Journal of Urban Economics, Elsevier, vol. 65(2), pages 127-135, March.
  11. Friso Vor & Henri Groot, 2010. "Agglomeration externalities and localized employment growth: the performance of industrial sites in Amsterdam," The Annals of Regional Science, Springer, vol. 44(3), pages 409-431, June.
  12. 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.
  13. 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].
  14. Rita Almeida, 2007. "Local Economic Structure and Growth," Spatial Economic Analysis, Taylor & Francis Journals, vol. 2(1), pages 65-90.
  15. 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.
  16. David B. Audretsch & Dirk Dohse, 2007. "Location: A Neglected Determinant of Firm Growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(1), pages 79-107, April.
  17. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, June.
  18. Koski, Heli, 2008. "Public R&D Subsidies and Employment Growth - Microeconomic Evidence from Finnish Firms," Discussion Papers 1143, The Research Institute of the Finnish Economy.
  19. Harald Strotmann, 2007. "Entrepreneurial Survival," Small Business Economics, Springer, vol. 28(1), pages 87-104, January.
  20. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  21. Josep Maria Arauzo Carod, . "Determinants of industrial location. An application for Catalan municipalities," Studies on the Spanish Economy 138, FEDEA.
  22. 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 431-34, November.
  23. Cainelli, Giulio & Lupi, Claudio, 2008. "Does Spatial Proximity Matter? Micro-evidence from Italy," Economics & Statistics Discussion Papers esdp08042, University of Molise, Dept. EGSeI.
  24. 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.
  25. Jun Koo & Tae-Eun Kim, 2009. "When R&D matters for regional growth: A tripod approach," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 825-840, November.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:iaw:iawdip:61. 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: (Rolf Kleimann)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.